Neco 2017 Financial Accounting Question 27

A manufacturing firm provided the following data for the year:\n\n- Opening raw material stock: \(\text{₦}80,000\)\n- Purchases of raw material: \(\text{₦}250,000\)\n- Closing raw material stock: \(\text{₦}70,000\)\n- Opening work‑in‑progress (WIP): \(\text{₦}45,000\)\n- Closing WIP: \(\text{₦}55,000\)\n- Direct labour cost: \(\text{₦}180,000\)\n- Factory overhead is applied at \(130\%\) of direct labour.\n- Abnormal loss of raw material is \(2\%\) of raw material used.\n- Sales revenue: \(\text{₦}1,000,000\)\n- Selling and distribution expenses: \(\text{₦}120,000\)\n- Administrative expenses: \(\text{₦}90,000\)\n\nAssuming all goods manufactured are sold, determine the net profit for the year.