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

In the weighted average method, the total production cost to be accounted for is the sum of the cost of beginning work in process inventory and the cost incurred during production.

Beginning work in process inventory = $35,000
Cost incurred during production = $46,300 + $10,000 (direct labor) + $1,000 (indirect materials) + $3,000 (indirect labor) + $5,000 (factory overhead) = $65,300

Total production cost to be accounted for = $35,000 + $65,300 = $81,300

The Following Amounts Were Selected from the Production Report of Chandon