The following amounts were selected from the production report of Doggie Donuts Corporation: Actual units in production 55,000
Equivalent units (materials) 55,000
Equivalent units (conversion) 45,000
Cost per equivalent unit (materials) $1.50
Cost per equivalent unit (conversion) $1.10
Doggie Donuts uses the weighted average costing method in preparing its production reports. What must Doggie Donuts' total production cost to be accounted for have been?
A) $49,500
B) $82,500
C) $132,000
D) $150,000

Question

Quizplus · Accepted Answer

The total production cost is calculated by adding the cost of materials and the cost of conversion. Materials cost = 55,000 units * $1.50 = $82,500. Conversion cost = 45,000 units * $1.10 = $49,500. Total production cost = $82,500 + $49,500 = $132,000.

The Following Amounts Were Selected from the Production Report of Doggie