Waec Model Questions Vol1 2023 Financial Accounting Question 2

Alpha Manufacturing Ltd. recorded the following transactions for the month of March 2023 (all amounts in ₦): 1. Opening raw material stock: 120,000. 2. Purchased raw material for cash: 250,000. 3. Direct labour incurred and paid: 180,000. 4. Manufacturing overhead is applied at 150% of direct labour cost. 5. Actual factory overhead incurred (cash) including depreciation of equipment: 90,000 (depreciation component = 30,000). 6. Production started: 5,000 units; completed: 4,200 units; ending work‑in‑process (WIP): 800 units, 40% complete as to conversion. 7. No opening finished‑goods inventory. 8. Sales: 4,200 units at ₦500 each, cash received ₦2,100,000. 9. Administrative expenses paid cash: 50,000. Prepare the following: (a) Record the journal entries for all the above transactions. (b) Post the entries to the appropriate ledger accounts and prepare an unadjusted trial balance. (c) Using the data, compute the gross profit for March 2023, adjusting for any over‑ or under‑applied overhead.