QUESTION $4$

Fruity Food Sdn Bhd $($FFSB$)$ uses a process costing

system for its production. The company produces fruite

based munchies that passes through two $(2)$ sequential

processing departments, namely: Mixing Department

and Packaging Department. All direct materials are

added at the beginning of the process in the Mixing and

Packaging Departments. Whereas conversion cost

occurs uniformly throughout the production process. The

following data is for the month of Disember $2023$ for

Mixing Department:

REQUIRED:

$($a$)$ Prepare a production report for Mixing

Department using the first$-$in$,$ first$-$out $($FIFO$)$

method. Round the unit cost up to two decimal

points, and total cost to the nearest RM$.$

$($b$)$ Advise on which method of process costing

FFSB should choose to have a more consistent

cost per equivalent unit.