1. Calculate the normal average cost to produce one unit of milkshake during April 2021. (12) 2. Prepare the quantity statement assuming the company now makes use of the weighted average method of inventory valuation and the loss occurs at 10% completion. (4)

PARTB Flavoured Milk (Pty) Ltd manufactures long life milkshakes which are sold in 500 ml bottles. The company uses a process costing system. The following information was provided for the month ended 30 April 2021: 1) The company had 30 000 litres of milk in opening work in progress (WIP) on 1 April 2021. Opening WIP was 30% complete with a resulting cost of R 258 000 for material and R 162 000 for conversion 2) 120 000 litres of milk were put into production during the month of April 2021. 3) Litres completed and transferred to finished goods during the month were 120 000. 4) For the month of April 2021, material and conversion costs of R 1020 000 and R 780 000 respectively were incurred. 5) Evaporation occurs when the process is 70% complete, resulting in an estimated loss of 5% of the mixture. 6) Closing WIP of 20 000 litres were 60% complete. 7) The company uses the First-in-first-out (FIFO) method of inventory valuation. Material is added in the beginning of the process and conversion takes places evenly throughout the process