QUESTION $2(17$ MARKS$)(31$ MINUTES$)$

Continuous Process Limited manufactures a single product and uses a process costing system. The company recorded the following information for the month of June, $2024$:

$\backslash$table$[[,$Units$],[$Opening work in progress $("$opening WIP"$)$: $50\%$ complete,$9000],[$Closing work in progress $("$closing WIP"$)$: $75\%$ complete,$10000],[$New units put into production in June $2024,80000],[$Completed and transferred in June $2024,70000]]$

Normal loss is estimated at $4\%$ of the units that reach the wastage point.

Normal loss occurs when the process is $60\%$ complete.

Raw materials are added at the beginning of the process and conversion takes place evenly throughout the process.

Cost information was as follows:

Opening WIP

Raw materials

Conversion

Added in June $2024$

$\backslash$table$[[$Raw materials,$400000],[$Conversion$,250000]]$

$\backslash$table$[[$REQUIRED$,$Marks$],[($a$),$Prepare the quantity statement for June $2024$ based on the weighted average method of inventory valuation.,$(6)],[($b$),$Prepare the production cost statement, for June $2024$ based on the weighted average method of inventory valuation.,$(3)]]$

MAC$2601$

MAY $2025$

Assume now that loss occurs when the process is $50\%$ complete. Prepare the quantity statement for June $2024$ based on this new wastage point and the first$-$in$-$first$-$out $($FIFO$)$ mothod of inventory valuation.

$[17]$