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 impurities (e.g. wax

and bee stingers). The final product known as the "HoneyDew" 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) kilo of the raw-honey adjusted for losses and/or gains yields

one (1) kilogram of HoneyDew.

The following information relates to the process for the month ended 31 August 2020:

Details Notes Quantity Amount

Sales - HoneyDew 1 ?? N$783 250

Opening inventory of finished goods (HoneyDew) 150 units N$??

Closing inventory of finished goods (HoneyDew) ?? units N$??

Opening work-in-progress (WIP) - 60% complete 2 1 200 kg N$64 800

Closing WIP - 80% complete 750 kg N$??

Raw-honey put into production in the current period 3 5 800 kg N$331 300

Direct labour costs: current period 3 N$56 920

Production overheads: current period 3 N$60 000

Notes:

1. HoneyDew was sold at N$65 per unit in the month of August 2020.

2. N$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.

Requirement Marks

3.1 Prepare the actual quantity statement for TW for the month of August 2020. 10

3.2 Calculate TW's actual closing finished goods value as it would have appeared

in the profit statement for the month of August 2020. 17

3.3 Briefly contrast the treatment of a normal loss value to that of an abnormal loss

value in the profit statement applying process costing principles.

Ignore the implications of scrap value(s). 2