Gce Model Questions Vol1 2017 Financial Accounting Question 3

A manufacturer uses process costing with two departments. Department 1 (Materials) started 10,000 units, transferred 9,000 units to Department 2 and has 1,000 units in ending work‑in‑process, 30 % complete for materials. The only cost in Department 1 is materials costing £120,000. Department 2 received the 9,000 units, completed 8,500 units and has 500 units in ending work‑in‑process, 40 % complete for conversion. In Department 2 the costs are: materials £30,000, labour £45,000 and overhead £25,000. Finished goods inventory at the start was nil. The company sold 8,000 units at £50 each and has 500 units remaining in finished goods. Using the weighted‑average method, calculate the profit per unit sold (rounded to two decimal places).