Neco Model Questions Vol1 2022 Financial Accounting Question 36

A manufacturing firm uses process costing for two successive departments, Mixing and Packaging, and applies the weighted‑average method. The data are as follows:\n\nMixing Department:\n- Units started: 10,000\n- Units transferred to Packaging: 8,000\n- Ending work‑in‑process (WIP): 2,000 units (40% complete for materials, 30% for conversion)\n- Costs incurred: Materials \(\text{₦}120,000\), Conversion \(\text{₦}80,000\)\n\nPackaging Department:\n- Units received from Mixing: 8,000\n- Units completed and transferred out: 7,500\n- Ending WIP: 500 units (100% complete for materials, 20% for conversion)\n- Costs incurred in Packaging: Materials \(\text{₦}30,000\), Conversion \(\text{₦}45,000\)\n\nUsing the weighted‑average method, determine the cost per unit of finished goods transferred out of the Packaging department (express your answer in Naira, rounded to two decimal places).