Question 3 (29 marks) Tulipamwe Windhoek (TW) operates a process costing system to manufacture honey. The company buys raw honey from the farmers concentrated in the Zambezi region of Namibia. The process involves extracting raw-honey and filtering it to remove all forms of impurties leg, wax and bee stingers). The final product known as the "Honey Dow is packaged into 500 grams (g) containers and sold to the local market Raw honey is the only direct material required for the process. Raw honey required for the Honeydew is added at the beginning of the process. Conversion costs are incurred evenly throughout the process A normal loss is detected at inspection point which occurs when the process is 70% complete The normal loss is 5% of the input raw honey that reaches this point. All losses in the process are sold at N$2 per kilo. One (1) klo of the raw honey austed for losses and or gains yields one (1) kilogram of Honeydew. Page 12 of 16 The following information relates to the process for the month ended 31 August 2020: Details Notes Quantity Amount Sales - Money Dew 1 ?? N$783 250 Opening inventory of finished goods (Honeydew 150 units NS77 Closing inventory of finished goods (Money Dew) ?? units NS Opening work-in-progress (WIP) - 60% complete 2 1 200 kg N564 800 Closing WIP -80% complete NS? Raw.honey put into production in the current period 5 800 kg NS331 300 Direct labour costs: current period 3 NS56 920 Production overheads current period 3 NS60 000 750 Notes: 1. Honey Dew was sold at N$65 per unit in the month of August 2020. 2. NS 10 800 of the opening WIP value relates to the conversion costs and the balance thereof relates to the raw honey costs. 3. TW completed and transferred 6 000 kilograms during the month Marks 10 Requirement 3.1 Prepare the actual quantly statement for TW for the month of August 2020 32 Calculate TWS actual Closing finished goods value as it would have appeared in the proft statement for the month of August 2020 3.3 Briefly contrast the treatment of a normal loss value to that of an abnormal loss value in the prof statement applying process costing principles Ignore the implications of scrap was 17 2 N.B. Where applicable show all workings. Round off your workings and final answer to two decimal places. Total 29 Total assignment 1:93 marks