Neco 2024 Financial Accounting Question 36

A manufacturing company uses the weighted‑average method in a two‑department process (Mixing and Finishing). The following data are for the period:\n\nMixing Department:\n- Opening Work‑in‑Progress (WIP): 5,000 units, 40% complete for materials and 30% for conversion. Costs in opening WIP: Materials ₦12,000, Conversion ₦9,000.\n- Units started into production: 20,000 units.\n- Costs added during the period: Materials ₦48,000, Conversion ₦36,000.\n- Closing WIP: 4,000 units, 70% complete for materials and 50% for conversion.\n\nFinishing Department:\n- All units transferred from Mixing are processed here. No additional materials are added.\n- Conversion cost added during the period: ₦63,000.\n- Closing WIP in Finishing: 3,000 units, 40% complete for conversion.\n\nDuring the period a by‑product of 2,000 units is produced and sold for a total of ₦5,000.\n\n(a) Determine the cost per unit of the main product after allocating joint costs to the by‑product.\n(b) If the main product is sold for ₦150 per unit, calculate the profit earned from the sale of the main product and the by‑product.