Neco Model Questions Vol1 2024 Financial Accounting Question 31

XYZ Manufacturing produces two products, A and B, during the year. The following data are given: - Opening stock of raw materials: ₦120,000 - Purchases of raw materials: ₦450,000 - Closing stock of raw materials: ₦90,000 - Direct labour cost: ₦300,000 - Machine hours used: Product A = 2,500 hrs, Product B = 1,500 hrs - Overhead is applied at a rate of ₦150 per machine hour - Units produced: Product A = 5,000 units, Product B = 3,000 units - Opening work‑in‑process (combined): ₦80,000 - Closing work‑in‑process (combined): ₦70,000 - Opening finished goods (combined): ₦50,000 - Closing finished goods (combined): ₦60,000 - Selling price per unit of Product A: ₦250 - Trade discount on sales: \(5\%\) - Cash discount on the discounted price: \(2\%\) (all units are sold for cash) Determine the profit earned on the sale of all units of Product A after incorporating all the above adjustments.