ssessment task 2 HLO2- Question 3 Farah Ltd produces non-breakable containers in two processes: Mixing and Moulding. Costs are assigned using the Weighted Average method. On 1 August 2015 the Moulding Department had work in process inventory of 1,000 units which were 50% complete as to conversion costs. $500 9p b s Work in process inventory at 31 August consisted of 2,800 units which were 75% complete as to conversion costs. 2100 CIO During August the Moulding Department transferred 20,000 good units to finished goods. 800 units were lost during production. 400 of which were considered normal spoilage, and 400 abnormal. Lost production is detected at the end of the process. The cost of normal units lost in production is to be added to the cost of good units completed. Conversion costs are incurred uniformly throughout the process. Units transferred in enter at the start of moulding. Direct materials are added at the 25% completion point in the Moulding Department Details of costs Value WIP 1 August (for 1,000 units) -transfers in from mixing department -direct materials -conversion costs 8,640 1,450 3,960 14,050 195.264 Cost for August (for 22,600 units) -transfers in from mixing -direct materials -conversion costs 169,344 397,008 Required: (a) Prepare a cost of Production report for the Moulding Department for the month of August. In this, the cost of abnormal to spoilage must be clearly shown as well as the cost of good units transferred to finished goods. Round all costs per unit to two decimal places. (b) Prepare and balance the Work in Process ledger account for the Moulding Department showing full details of the entries. DM on Sharkel moulding 501, end