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

Question

Quizplus · Accepted Answer

The total production cost is the sum of the material cost and the conversion cost. The material cost is the cost per equivalent unit for materials multiplied by the equivalent units of production for materials. The conversion cost is the cost per equivalent unit for conversion multiplied by the equivalent units of production for conversion.Total production cost = Material cost + Conversion costMaterial cost = Cost per equivalent unit for materials * Equivalent units of production for materials= $1.50 * 55,000= $82,500Conversion cost = Cost per equivalent unit for conversion * Equivalent units of production for conversion= $1.10 * 45,000= $49,500Total production cost = $82,500 + $49,500= $132,000

The Following Amounts Were Selected from the Production Report of Doggie