Gce Model Questions Vol1 2022 Financial Accounting Question 31

A manufacturing company produces two products, A and B. The following data relate to the period:\n\n- Opening work‑in‑progress: 200 units of A and 150 units of B. The costs already incurred on opening WIP are 30\% of direct material, 50\% of direct labour and 40\% of variable overhead (no fixed overhead has been incurred).\n- Production during the period: 1\,200 units of A and 1\,000 units of B.\n- Direct material cost per unit: \(£5\) for A and \(£6\) for B.\n- Direct labour cost per unit: \(£3\) for A and \(£4\) for B.\n- Variable overhead per unit: \(£2\) for A and \(£2.5\) for B.\n- Machine‑hours per unit: 0.5 h for A and 0.8 h for B.\n- Fixed overhead for the period: \(£12\,000\), allocated on the basis of total machine‑hours.\n- Closing work‑in‑progress: 100 units of A and 80 units of B, at the same percentages of completion as the opening WIP.\n\nUsing the weighted‑average method, calculate the cost per completed unit of product B transferred out for the period. Give your answer to two decimal places.