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Opening work in progress ("opening WIP") (01 December): 40% complete: 10 000 Closing work in progress ("closing WIP") (31 December ): 70% complete 15 000 New units put into production in December 2021 120 000 90 000 Completed in December 2021 Additional information: Raw materials are added at the beginning of the process and conversion takes place evenly throughout the process. Normal losses are estimated at 6% of the units that reach/pass the wastage point. Normal losses occur when the process is 75% complete. Tlholo uses the First-In-First-Out (FIFO) method of inventory valuation. The cost information was as follows: Opening WIP Raw materials 75 000 Conversion 17 200 Added during December 2021 Raw materials 950 200 Conversion 520 185 REQUIRED (a) Prepare Tlholo's quantity statement for the month of December 2021. (b) Prepare Tlholo's production cost statement for the month of December 2021.

Opening work in progress ("opening WIP") (01 December): 40% complete: 10 000 Closing work in progress ("closing WIP") (31 December ): 70% complete 15 000 New units put into production in December 2021 120 000 90 000 Completed in December 2021 Additional information: Raw materials are added at the beginning of the process and conversion takes place evenly throughout the process. Normal losses are estimated at 6% of the units that reach/pass the wastage point. Normal losses occur when the process is 75% complete. Tlholo uses the First-In-First-Out (FIFO) method of inventory valuation. The cost information was as follows: Opening WIP Raw materials 75 000 Conversion 17 200 Added during December 2021 Raw materials 950 200 Conversion 520 185 REQUIRED (a) Prepare Tlholo's quantity statement for the month of December 2021. (b) Prepare Tlholo's production cost statement for the month of December 2021.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Tlholo Pty Ltd ("Tlholo") manufactures rubber raw material (a single product) that is sold to other companies that further process it to their specifications. Tlholo uses a process costing system. Tlholo has a 31 December year-end. Tlholo recorded the following information for the month of December 2021: Units Opening work in progress ("opening WIP") (01 December.): 40% complete: 10 000 15 000 Closing work in progress ("closing WIP") (31 December ): 70% complete New units put into production in December 2021 120 000 Completed in December 2021 90 000 Additional information: Raw materials are added at the beginning of the process and conversion takes place evenly throughout the process. Normal losses are estimated at 6% of the units that reach/pass the wastage point. Normal losses occur when the process is 75% complete. Tlholo uses the First-In-First-Out (FIFO) method of inventory valuation. The cost information was as follows: Opening WIP Raw materials 75 000 Conversion 17 200 Added during December 2021 Raw materials 950 200 Conversion 520 185 REQUIRED (a) Prepare Tlholo's quantity statement for the month of December 2021. (b) Prepare Tlholo's production cost statement for the month of December 2021.
Transcribed Image Text:Tlholo Pty Ltd ("Tlholo") manufactures rubber raw material (a single product) that is sold to other companies that further process it to their specifications. Tlholo uses a process costing system. Tlholo has a 31 December year-end. Tlholo recorded the following information for the month of December 2021: Units Opening work in progress ("opening WIP") (01 December.): 40% complete: 10 000 15 000 Closing work in progress ("closing WIP") (31 December ): 70% complete New units put into production in December 2021 120 000 Completed in December 2021 90 000 Additional information: Raw materials are added at the beginning of the process and conversion takes place evenly throughout the process. Normal losses are estimated at 6% of the units that reach/pass the wastage point. Normal losses occur when the process is 75% complete. Tlholo uses the First-In-First-Out (FIFO) method of inventory valuation. The cost information was as follows: Opening WIP Raw materials 75 000 Conversion 17 200 Added during December 2021 Raw materials 950 200 Conversion 520 185 REQUIRED (a) Prepare Tlholo's quantity statement for the month of December 2021. (b) Prepare Tlholo's production cost statement for the month of December 2021.
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