Gce Model Questions Vol1 2024 Financial Accounting Question 37

A manufacturing firm produces two products, A and B. The following data relate to the year: - Opening raw‑material stock: \(\text{₦}50,000\). - Purchases of raw materials: \(\text{₦}120,000\). - Closing raw‑material stock: \(\text{₦}30,000\). - Direct labour cost: \(\text{₦}80,000\). - Manufacturing overhead is applied at \(\text{₦}5\) per machine hour. Total machine hours used = 4,000 h (Product A 2,400 h, Product B 1,600 h). - Opening work‑in‑progress (WIP): \(\text{₦}20,000\). - Closing WIP: \(\text{₦}15,000\). - Opening finished‑goods stock: \(\text{₦}25,000\). - Closing finished‑goods stock: \(\text{₦}35,000\). - Units produced: Product A 2,000 units, Product B 1,600 units. - Selling price per unit: Product A \(\text{₦}150\), Product B \(\text{₦}200\). No selling expenses are considered. Using machine‑hour proportion to allocate cost of goods sold, calculate the profit earned per unit of Product B.