The following amounts were selected from the production report of Chandon Corporation: Chandon uses the weighted average method in preparing its production reports.Chandon's total production cost to be accounted for must have been
A)$89,100
B)$84,000
C)$81,300
D)$72,900

Question

The following amounts were selected from the production report of Chandon Corporation:  Chandon uses the weighted average method in preparing its production reports.Chandon's total production cost to be accounted for must have been
A)$89,100 
B)$84,000 
C)$81,300 
D)$72,900

Quizplus · Accepted Answer

To determine the total production cost to be accounted for, we need to add up the direct materials used, direct labor costs, and manufacturing overhead costs. Using the weighted average method:

Direct materials used: 
Beginning inventory of raw materials = $9,000 
Purchases of raw materials = $60,000 
Total materials available for use = $69,000 
Less: Ending inventory of raw materials = $9,900 
Direct materials used = $59,100

Direct labor: 
Total direct labor = $13,800

Manufacturing overhead: 
Total manufacturing overhead = ($70,800 + $72,900) / 2 = $71,850

Total production cost to be accounted for: 
Direct materials used + Direct labor + Manufacturing overhead = $59,100 + $13,800 + $71,850 = $81,750

Therefore, the best choice is C, $81,300.

The Following Amounts Were Selected from the Production Report of Chandon