Post Utme Osustech 2023 Accounting Question 16

A company uses the process costing method to account for its production costs. The company has two departments: Cutting and Assembly. The Cutting department has a beginning work-in-process inventory of 10,000 units with a cost of ₦50,000. During the period, the Cutting department incurred direct materials of ₦120,000 and direct labor of ₦80,000. The Assembly department has a beginning work-in-process inventory of 8,000 units with a cost of ₦40,000. During the period, the Assembly department incurred direct materials of ₦100,000 and direct labor of ₦60,000. The company uses a predetermined overhead rate of 150% of direct labor costs. The total production cost for the period is ₦500,000. What is the total cost of goods manufactured for the period?