Neco Model Questions Vol1 2024 Financial Accounting Question 49

A manufacturing firm uses process costing with the weighted‑average method. At the start of the month there were 5,000 units in opening work‑in‑process (WIP) that were 40 % complete for materials and 30 % complete for conversion. During the month 20,000 units were started. At the end of the month 4,000 units remained in closing WIP, 70 % complete for materials and 50 % complete for conversion. The costs added during the month were: Materials \(\text{₦}120,000\) and Conversion (labour & overhead) \(\text{₦}180,000\). The opening WIP contained costs of Materials \(\text{₦}30,000\) and Conversion \(\text{₦}45,000\).\n\nDetermine (a) the cost per equivalent unit for materials and for conversion, and (b) the total cost assigned to the units completed and transferred out.