QUESTION $1$: PROCESS COSTING

$[20$ MARKS$]$

Phekani Products $($PTY$)$ manufactured a variety of products through a series of processes. One of these products is product Idla, which goes through three processes: Process A$,$ B and C$.$ The following information relates to Process C for the month of June $2017$:

$\backslash$table$[[$Process C$,$Units,Costs$],[1.$ Work in process was $30\%$ complete$(1$ June $2017),,],[$Number of units,$21000,],[$Previous process cost,,$14000],[$Material cost$,,10521],[$Conversion cost$,,945],[2.$ Current production data,,$],[$Units introduced into production process from Process B$,350000,],[$Units completed and transferred,$300300,],[$Previous process cost,,$235000],[$Material cost$,,176050],[$Conversion cost$,,67760],[3.$ Closing work in process$(80\%$ complete $31$ June $2017),29400,]]$

Materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. Normal loss is estimated at $10\%$ of units that are introduced into the process. Spoilage occurs at the beginning of the process. The company uses FIFO method of inventory valuation.

Required:

Prepare the production cost report for Phekani Products $($PTY$)$ for the month of June $2017.($Note: Round off 'cost per unit'$-$calculations and 'total cost'$-$calculations to $2$ decimal places.

QUESTION $2$: ACTIVITY$-$BASED COSTING

$[20$ MARKS$]$

Zoltan Limited uses a traditional costing system. Two production departments, A and B $,$ are supported by five $(5)$ activities $($material procurement, material handling, maintenance, quality control and set$-$up$).$ Product Regular is a uniform product manufactured each year $(12$ months$)$ in high$-$volume production runs. Product De$-$Luxe is manufactured in low volume customized batches involving five $(5)$ separate production runs each month.

During $2017,$ the company had a total factory overhead cost of R$120000$ for the year. The number of machine hours used in production departments A and B were $800$ and $3200$ respectively. The number of direct labour hours in production departments A and $B$ were $2000$ and $1000$ respectively.

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