QUESTION 2 Rehoboh Paving Ltd is a manufacturer of paving bricks located in the south. The company uses process costing system in two departments, namely the mbxing & casting department and the aking department. All production and sales of bricks take place in one kilogram batches. The following information is available regard ing the mixing & casting department for December 2016: Work-in-process on 1 December (30% completed) Prior period costs in respect of WIP: Stone and cement Conversion costs 8 500kg N$108 750 N$20 400 Stone and cement placed into production Completed and transferred to the baking department work-in-process on 31 December (60% completed) 41 500kg 40 000kg 7 000kg Costs incurred during the month: Stone and cement Conversion costs N$622 500 N$308 350 The stone and cement are added at the beginning of the process. While conversion costs are added evenly throughout the process. Bricks are inspected when the process is 80% complete. No abnormal losses occurred during the month. REQUIRED MARKS 24 Using the FIFO method, prepare the Quantity Statement (Inclusive of 2.1 20 Equivalent Units), 2.2 Determine the Equivalent Cost Per Unit TOTAL MARKS FOR QUESTION 2 25 Page 5 of 13