Question 3 (20 Marks, 36 Minutes) RainBow Trading is a paint manufacturing company based in Windhoek and sells its products through all major building materials outlets across the country. Its manufacturing process is based on two stages of production being the mixing and packaging. Materials are added at the beginning of the process in both departments whilst convertion costs are incurred uniformly throughout the departments. Because of human interventions in the process, spillage do occur at an acceptable rate of 10% of the inputs and losses are occurring at beginning of the production process.

The following information relates to packaging department for the month of July 2020. Opening WIP is 5 000 units which are 70% complete with respect to Conversion

Material	N$ 95 000
Conversion	N$ 180 000

20 000 Units were put into production during July 2020. 15 000 Units were completed and transferred out. 7 000 Units remains as closing WIP that is 60% complete

Period costs are as follows: Materials N$ 175 000, Labour N$ 215 000 and Applied overheads amounts to N$ 119 000.

REQUIRED:	Marks
Prepare the July20 cost report for RainBow Trading using FIFO method.	20
TOTAL MARKS	20