Reference: 04-03 Madsen Company Uses the Weighted-Average Method in Its Process Costing

question 64

Multiple Choice

Reference: 04-03
Madsen Company uses the weighted-average method in its process costing system. During October, the Mixing Department transferred out 40,000 units. The October 31 work in process inventory in the Mixing Department consisted of 4,000 equivalent units of material and 5,000 equivalent units of labour and overhead. The cost per equivalent unit was $2.50 for materials and $6.25 for labour and overhead.
-The total cost of the October 31 work in process inventory was?

• A)$35,000.
• B)$43,750.
• C)$78,750.
• D)$41,250.

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Definitions:

Sensorimotor Stage

The first stage in Piaget's theory of cognitive development, from birth to about 2 years of age, where infants learn about the world through their sensory impressions and motor activities.

Concrete Operational

A stage in Jean Piaget's theory of cognitive development during which children (ages 7-12 approximately) gain a better understanding of mental operations, leading to more logical thoughts about concrete events.

Formal Operational

The stage of cognitive development, according to Piaget, where individuals can think abstractly and systematically.

Assimilation

The cognitive process of fitting new information into pre-existing cognitive schemas, perceptions, and understanding.