Post Utme Unilag 2019 Accounting Question 16

A company uses a job costing system to account for its manufacturing costs. The company has two departments: Cutting and Assembly. The Cutting department incurs costs of ₦120,000 and the Assembly department incurs costs of ₦180,000. The company produces 1,000 units of a product. The Cutting department incurs a direct labor cost of ₦50 per unit and the Assembly department incurs a direct labor cost of ₦30 per unit. The company uses a predetermined overhead rate of 150% of direct labor cost. Calculate the total cost of production for the 1,000 units.