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29 March, 07:56

The following amounts were selected from the production report of Chandon Corporation:

Actual units in production Equivalent units (materials) Equivalent units (conversion)

Cost per equivalent unit (materials) Cost per equivalent unit (conversion)

42,000 42,000 39,000 $1.10 $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. $89,100

B. $84,000

C. $81,300

D. $72,900

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Answers (1)
  1. 29 March, 09:32
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    correct option is C. $81,300

    Explanation:

    given data

    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

    solution

    we get here Equivalent Cost for Material that is

    Equivalent Cost for Material = 42000 * 1.1

    Equivalent Cost for Material = 46200

    and Equivalent Cost of Labor will be here as

    Equivalent Cost of Labor = 39000 * 0.9

    Equivalent Cost of Labor = 35100

    so total cost of production will be

    total cost of production = 46200 + 35100

    total cost of production = $81300

    so correct option is C. $81,300
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