Maximilian CD Producers Use the Weighted Average Method of Process

question 32

Essay

Maximilian CD producers use the weighted average method of process costing.The following information was available for the current year:
$\begin{array}{lcc}& \text {Number } & \text {Production } \\&\underline{ \text {of units } } &\underline{\text { costs }}\\ \text { Beginning work-in-process ( \( 30 \% \) complete) } &4000&\$7000\\ \text {Goods completed in the period } &65000&142000\\ \text { Ending work-in-process ( \( 40 \% \) complete) } &7000\\\end{array}$


Required:
A. How many total equivalent units were completed during the year?
B. What was the cost per equivalent urit?
C. What is the cost allocated to the ending work-in-process units?
D. What is cost of goods manufactured for the year?

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Definitions:

Marginal Revenue

The increase in income derived from the sale of one more unit of a good or service.

Total Cost

The sum of all expenses incurred in the production of goods or services, including fixed and variable costs.

Single Price Monopolist

A monopolist that charges all consumers the same price for its product, as opposed to practicing price discrimination.

Profit Area

The part of a business or market where the difference between revenue and costs is positive, indicating financial gain.