Neco Model Questions Vol1 2020 Financial Accounting Question 24

A manufacturing firm provides the following data for the year:\nOpening raw‑material stock: \(\text{₦}25{,}000\)\nPurchases of raw materials: \(\text{₦}80{,}000\)\nClosing raw‑material stock: \(\text{₦}15{,}000\)\nDirect labour: \(\text{₦}45{,}000\)\nDirect expenses (electricity for production): \(\text{₦}12{,}000\)\nManufacturing overhead is applied at 150 % of direct labour.\nOpening work‑in‑progress (WIP): \(\text{₦}20{,}000\)\nClosing WIP is 40 % of the total manufacturing costs incurred.\nOpening finished‑goods stock: \(\text{₦}30{,}000\)\nClosing finished‑goods stock: \(\text{₦}35{,}000\)\nSales: \(\text{₦}250{,}000\)\nSales returns: \(\text{₦}10{,}000\)\nAdministrative expenses: \(\text{₦}18{,}000\)\nSelling expenses: \(\text{₦}12{,}000\)\nInterest on loan: \(\text{₦}5{,}000\)\nDetermine (a) the amount of closing work‑in‑progress and (b) the net profit for the year.