Homework answers / question archive / QUESTION 5 -(11 Marks) (13 Minutes) Tlholo Pty Ltd ("Tiholo") manufactures rubber raw material (a single product) that is sold to other companies that further process it to their specifications

QUESTION 5 -(11 Marks) (13 Minutes) Tlholo Pty Ltd ("Tiholo") manufactures rubber raw material (a single product) that is sold to other companies that further process it to their specifications

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QUESTION 5 -(11 Marks) (13 Minutes) Tlholo Pty Ltd ("Tiholo") 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. Tiholo recorded the following information for the month of December 2021 Units Opening work in progress ("opening WIP") (01 December ): 40% complete 10 000 Closing work in progress ("closing WIP") (31 December ). 70% complete New units put into production in December 2021 15 000 120 000 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: T R Opening WIP Raw materials Conversion Added during December 2021 Raw materials Conversion 75 000 17 200 950 200 520 185 REQUIRED (a) Prepare Tiholo's quantity statement for the month of December 2021 (b) Prepare Tiholo's production cost statement for the month of December 2021 TOTAL Marks (8) (3) 11