The following amounts were selected from the production report of Chandon Corporation: $\begin{array}{lr}
\text { Actual units in production } & 42,000 \
\text { Equivalent units (materials) } & 42,000 \
\text { Equivalent units (conversion) } & 39,000 \
\text { Cost per equivalent unit (materials) } & £ 1.10 \
\text { Cost per equivalent unit (conversion) } & £ 0.90
\end{array}$ Chandon uses the weighted average method in preparing its production reports. Chandon's total production cost to be accounted for must have been
A) $ £ 81,300 $.
B) $ £ 84,000 $.
C) $ £ 89,100 $.
D) $ £ 72,900 $.

Question

The following amounts were selected from the production report of Chandon Corporation: $\begin{array}{lr}
\text { Actual units in production } & 42,000 \
\text { Equivalent units (materials) } & 42,000 \
\text { Equivalent units (conversion) } & 39,000 \
\text { Cost per equivalent unit (materials) } & £ 1.10 \
\text { Cost per equivalent unit (conversion) } & £ 0.90
\end{array}$ Chandon uses the weighted average method in preparing its production reports. Chandon's total production cost to be accounted for must have been 
A) $ £ 81,300 $.
B) $ £ 84,000 $.
C) $ £ 89,100 $.
D) $ £ 72,900 $.

Quizplus · Accepted Answer

Total production cost = (Equivalent units (materials) x Cost per equivalent unit (materials)) + (Equivalent units (conversion) x Cost per equivalent unit (conversion))= (42,000 x £ 1.10) + (39,000 x £ 0.90)= £ 46,200 + £ 35,100= £ 81,300

The Following Amounts Were Selected from the Production Report of Chandon