QUESTION $1(20$ Marks$)$

REQUIRED

Prepare the Process Cost Report for Process $2$ using the FIFO method.

INFORMATION

Bravo Ltd uses two processes to manufacture cushions. The following details are applicable to Process $2$ for

March $2024$:

Production details Units

Units of incomplete work $($opening$)$

$($Materials: $100\%$ complete; Conversion costs: $40\%$ complete$)40000$

Units received from the previous process $160000$

Units completed and transferred $?$

Units of incomplete work: closing $($Materials: $100\%$ complete; Conversion costs: $60\%$ complete$)80000$

Details in connection with costs: R

Incomplete work $($opening$)$: $?$

Costs of previous process $?$

Direct materials $88000$

Conversion costs $48000$

Costs incurred during March $2024$: $1376000$

Transferred from previous process $904000$

Direct materials $168000$

Conversion costs $304000$

$2016000$