Though COVID-19 has affected the majority of companies and individuals worldwide, to some companies; the pandemic is regarded as a window of business opportunity. Simox Pharmaceuticals Cc is one of the few Namibian companies that are locally manufacturing hand sanitizers for use in the fight of COVID-19. The hand sanitizers are produced in masses through a process costing system. The following information was extracted from the company’s records for the month ended 31 August 2020 Description units N$ work in progress - 1 july 2020 2000 - materials 100% complete - 50000 - Coversion 80% - 45000 During the month units introduced to production 80000 - work in progress - 31 August 2020 - Material 100% complete - Conversion 40% complete 500 80000 60600 Normal loss 5% of units that reached the inspection point - Additional information: Materials are added at the beginning of the process. Losses are detected when units are 80% complete. Conversion costs are incurred evenly during the period. 90% of units to account for were completed and transferred out during August 2020. Losses have no scrap value. The company uses the FIFO method in valuing its inventory. Required: Prepare the following for the year ended 30 September 2016 3.1. Physical units schedule 3.2. Production schedule clearly showing the equivalent units 3.3. Unit cost schedule
Question 3
Though COVID-19 has affected the majority of companies and individuals worldwide, to some
companies; the pandemic is regarded as a window of business opportunity. Simox
Pharmaceuticals Cc is one of the few Namibian companies that are locally manufacturing hand
sanitizers for use in the fight of COVID-19. The hand sanitizers are produced in masses through
a
for the month ended 31 August 2020
| Description | units | N$ |
| work in progress - 1 july 2020 | 2000 | |
| - materials 100% complete | - | 50000 |
| - Coversion 80% | - | 45000 |
| During the month | ||
| units introduced to production | 80000 | - |
|
work in progress - 31 August 2020 - Material 100% complete - Conversion 40% complete |
500 | 80000 60600 |
| Normal loss | 5% of units that reached the inspection point | - |
Additional information:
Materials are added at the beginning of the process.
Losses are detected when units are 80% complete.
Conversion costs are incurred evenly during the period.
90% of units to account for were completed and transferred out during August 2020.
Losses have no scrap value.
The company uses the FIFO method in valuing its inventory.
Required: Prepare the following for the year ended 30 September 2016
3.1. Physical units schedule
3.2. Production schedule clearly showing the equivalent units
3.3. Unit cost schedule
3.4. Cost appropriation statement
3.5. Between the abnormal loss and normal loss, which one should not be
shown as a separate line item in the statement of
why?
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