The following amounts were selected from the production report of Chandon Corporation: Actual units in production
42,000
Equivalent units (materials)
42,000
Equivalent units (conversion)
39,000
Cost per equivalent unit (materials)
£1)10
Cost per equivalent unit (conversion)
£0)90
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

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