Neco Model Questions Vol1 2020 Financial Accounting Question 31

A manufacturing company produces two products, A and B. The following data relate to product B for the year:\n\n- Opening work‑in‑process (WIP): 300 units, 100\% complete for materials, 40\% for labour, 20\% for overhead.\n- Production during the year: 3\,200 units.\n- Closing WIP: 500 units, 100\% complete for materials, 40\% for labour, 20\% for overhead.\n- Direct material cost per unit: \(\text{₦}200\).\n- Direct labour cost per unit: \(\text{₦}120\).\n- Overhead is applied on the basis of machine hours at a rate of \(\text{₦}200\) per machine hour. Each unit of product B requires 0.4 machine hour.\n\nTotal overhead for the period is \(\text{₦}500\,000\).\n\nCalculate the cost per unit of product B for the units completed during the year (i.e., cost of goods manufactured ÷ number of units completed). Give your answer to two decimal places.