Question 2 (27 Marks) Though COVID-19 has affected the majority of companies and individuals worldwide, to some companies; the pandemic is regarded as a window of business opportunity. Simox Pharmaceuticals Cc is one of the few Namibian companies that are locally manufacturing hand sanitizers for use in the fight of COVID-19. The hand sanitizers are produced in masses through a process costing system. The following information was extracted from the company's records for the month ended 31 August 2020: Page 10 of 16 FACULTY OF ECONOMIC & MANAGEMENT SCIENCES Units N$ 2 000 Description Work in process - 1 July 2020 Material 100% complete Conversion 80% 50 000 45 000 8 000 During the month: Units introduced to production Work in process - 31 August 2020 Material 100% Conversion 40% complete Normal loss 500 80 000 60 600 5% of units that reached the inspection point Additional information: . . . Materials are added at the beginning of the process. Losses are detected when units are 80% complete. Conversion costs are incurred evenly during the period. 90% of units to account for were completed and transferred out during August 2020. Losses have no scrap value. The company uses the FIFO method in valuing its inventory. . Required: Prepare the following for the year ended 30 September 2016: Marks 2.1. Physical units schedule 2 2.2. Production schedule clearly showing the equivalent units 6 2.3. Unit cost schedule 5 2.4. Cost appropriation statement 13 2.5. Between the abnormal loss and normal loss, which one should not be shown as a separate line item in the statement of profit and loss, and 1 why? TOTAL MARKS 27 Question 3 (17 Marks) Omega Oil Refinery manufactures vegetable oil from sun-flower plants and refines the Crude vegetable oil. The refining process results in four products at the split off: Crude Sweet, Crude Vigar, Crude Chilly and Fibra. Fibra is fully processed at the split off. Crude Sweet, Crude Vigar, and Crude Chilly can be individually be further refined into Sun Sweet, Sun Vigar and Sun Chilly respectively. The joint costs of crushing and processing sunflower to crude vegetable oil was N$ 2 100 000