Neco 2018 Financial Accounting Question 23

Widget Ltd uses process costing. The following data are for the quarter:\n\n**Department A** (materials added at the start)\n- Opening WIP: 5,000 units, 40 % complete for conversion; cost = \(\text{₦}30,000\) materials + \(\text{₦}20,000\) conversion\n- Units started: 25,000\n- Units transferred to Dept B: 20,000\n- Closing WIP: 10,000 units, 50 % complete for conversion\n- Materials added during period: \(\text{₦}150,000\)\n- Conversion added during period: \(\text{₦}120,000\)\n- Machine hours: 4,000 hrs; overhead applied at \(\text{₦}5\) per hour\n\n**Department B** (materials added at the start)\n- Opening WIP: 2,000 units, 30 % complete for conversion; cost = \(\text{₦}12,000\) materials + \(\text{₦}8,000\) conversion\n- Units received from Dept A: 20,000\n- Units started: 15,000\n- Units completed and transferred to finished goods: 30,000\n- Closing WIP: 2,000 units, 60 % complete for conversion\n- Materials added during period: \(\text{₦}90,000\)\n- Conversion added during period: \(\text{₦}110,000\)\n- Machine hours: 5,000 hrs; overhead applied at \(\text{₦}6\) per hour\n\nCalculate the total cost of units transferred to finished goods after Department B, including the cost of units transferred in from Department A.