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Smooth Rum Ine manufactures various wines and spirits for local as well as international consumption. The juices are prepared through two processes. Process I involves
Smooth Rum Ine manufactures various wines and spirits for local as well as international consumption. The juices are prepared through two processes. Process I involves Mixing and Blending and distillation and Fermentation. The bottling of the finish products cost is minimal in relation to the other processes and is not treated as a separate process. All direct materials inputs are added at the beginning of process 1 . The information presented below is for the production of the flagship brand Bajan spice rum in process 1. The organization uses the FIFO method for inventory valuation. The normal loss results from evaporation of the product during process 1 . TURN OVER 7 All spotled units are dumped at no residual value. Required (25 Marks) Calculate the cost of: a) Units transferred to process 2 b) Ending work in process c) Abnormal loss
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