Waec Model Questions Vol1 2017 Financial Accounting Question 50

A manufacturing firm produces two products, X and Y, during the month. The following information is available: - Opening Work‑in‑Progress (WIP): X = ₦30,000; Y = ₦20,000. - Direct Materials issued to production: X = ₦120,000; Y = ₦80,000. - Direct Labour cost: X = ₦45,000; Y = ₦55,000. - Machine hours used: X = 400 hrs; Y = 600 hrs. - Overhead is applied on the basis of machine hours at a rate of ₦150 per hour. - Closing Work‑in‑Progress: X = ₦25,000; Y = ₦35,000. - Closing Finished Goods inventory: X = ₦50,000; Y = ₦70,000. - The factory overhead is under‑applied by ₦12,000 at month‑end and this amount is to be allocated between the two products in proportion to the overhead applied to each. Determine the cost of goods sold (COGS) for product Y for the month.