Production units: Opening inventory: Work in Process 4 000 (Material 100% complete; conversion 80% complete) Units received from previous process A 18 000 Units completed and transferred to process C 20 000 Closing inventory 2 000 (Material 100% complete; conversion 40% complete)

Production costs: Opening inventory: 129 500 Costs from previous process 75 100 Material 29 200 Conversion 25 200 Costs incurred in current period: 403 956 Transferred from previous process 260 100 Material 90 000 Conversion 53 856 TOTAL 533 456 R

REQUIRED: Use the first- in-first-out (FIFO) method to prepare a product cost report consisting of the following:

3.1 Quantity statement (12)

3.2 Cost statement (8)

3.3 Cost allocation statement (25 MARKS) (5)