Neco Model Questions Vol1 2017 Financial Accounting Question 41

A manufacturing company uses a two‑department process costing system. In Department A, 12,000 units were started. During the period 10,000 units were completed and transferred to Department B and 2,000 units remain in ending work‑in‑process, 50 % complete for materials and 30 % complete for conversion. Materials are added at the start of the process. Department A incurred the following costs: Materials ₦120,000, Labour ₦80,000 and Overheads ₦100,000. Using the weighted‑average method, calculate the cost per equivalent unit for materials and for conversion, then determine the total cost of the units transferred to Department B. Department B receives the units from Department A and adds conversion costs of Labour ₦150,000 and Overheads ₦50,000. During the period Department B completes 9,000 units and has 1,000 units in ending work‑in‑process, 70 % complete for conversion. No further materials are added in Department B. Compute the total cost of the finished goods after Department B.