Neco Model Questions Vol1 2022 Financial Accounting Question 20

The manufacturing accounts of a firm contain the following information for the month:\n- Opening work‑in‑process (WIP) inventory: \(\₦40,000\) (materials \₦20,000, labour \₦10,000, overhead \₦10,000).\n- Direct materials purchased: \(\₦120,000\). Of these, \(\₦15,000\) were already included in the opening WIP.\n- Direct labour incurred: \(\₦80,000\).\n- Manufacturing overhead is applied at 150 % of direct labour. Actual overhead incurred is \(\₦120,000\).\n- Closing WIP inventory: \(\₦30,000\) (materials \₦12,000, labour \₦8,000, overhead \₦10,000).\n- Opening finished‑goods inventory: \(\₦60,000\).\n- Sales for the month: \(\₦500,000\).\n- Selling and administrative expenses: \(\₦40,000\).\nDetermine the gross profit for the month.