Madsen Company Uses the Weighted-Average Method in Its Process Costing

question 129

Multiple Choice

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.
-What was the total cost of the October 31 work-in-process inventory?

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

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Definitions:

Cerebrum

The largest part of the brain, responsible for voluntary actions, cognition, memory, and sensory processing.

Brain Stem

The part of the brain connecting the spinal cord with the forebrain and cerebrum, controlling vital functions such as breathing and heart rate.

Body Temperature

The measure of the body's ability to generate and get rid of heat, reflecting the balance between heat production and heat loss, crucial for proper physiological functioning.

Hypothalamus

A region of the brain responsible for producing hormones that control body temperature, hunger, moods, release of hormones from many glands, especially the pituitary gland, sleep, and thirst.