QUESTION 2: PART B - PROCESS COSTING [20 Marks) Somahhase (Pty) Ltd manufactures a single product in a single process and uses a process costing system. Material is added at the beginning of the process while conversion costs are incurred evenly throughout the process. Costs and production information for the month of August 2020 are as follows: Production Units WIP (Work in Progress): 1 August 2020 (40% complete) 6 000 Units put into production 69 000 Units completed and transferred to finished goods 48 000 WIP: 31 August 2020 (70% complete) 12 000 R Costs WIP: 1 August 2020 Material Conversion costs 120 000 250 000 Current production costs Material 1 800 000 Conversion costs 2 300 000 Total 4 470 000 Additional information: 1. 2. 3. The company uses the First-in-First-Out (FIFO) method for inventory valuation. Normal loss for August is 20% of the units that reach the point of wastage. Wastage occurs when the process is 80% complete. Marks (13) (3) REQUIRED fa) Prepare a quantity statement for Somahhase for August 2020 (b) Calculate the equivalent cost per unit for August 2020, (c) Differentiate normal loss to abnormal loss by providing two (2) characteristics of each of the two concepts. TOTAL (4) 20 11