Question

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.$72,900. b.$89,100. c.$81,300. d.$84,000.

Answer 1

Total cost is equal to $81300

So option (c) will be correct answer.

Step-by-step explanation:

Actual unit of production = 42000

Cost of per equivalent material = $1.10

Equivalent cost of material =
`=42000*1.1=46200`$

Equivalent cost of labor =
`=39000* 0.9=35100`$

Therefore total cost of production = $46200+$35100 = $81300

So total cost will be $81300

Therefore option (c) is the correct answer