Rehoboth Paving Ltd is a manufacturer of paving bricks located in the south. The company uses

a process costing system in two departments, namely the mixing & casting department and the

baking department.

QUESTION 2 25 MARKS Rehoboth Paving Ltd is a manufacturer of paving bricks located in the south. The company uses a process costing system in two departments, namely the mixing & casting department and the baking department. All production and sales of bricks take place in one kilogram batches. The following information is available regarding the mixing & casting department for December 2016: Work-in-process on 1 December (30% completed) 8 500kg Prior period costs in respect of WIP: Stone and cement N$108 750 Conversion costs N$20 400 Stone and cement placed into production 41 500kg Completed and transferred to the baking department 40 000kg Work-in-process on 31 December (60% completed) 7 000kg Costs incurred during the month: Stone and cement N$622 500 Conversion costs 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: Using the FIFO method, prepare the Quantity Statement (Inclusive of Equivalent Units), 2.2 Determine the Equivalent Cost Per Unit TOTAL MARKS FOR QUESTION 2 2.1 MARKS 20 5 25