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:

Team Members

Individuals who contribute their skills and efforts towards achieving the objectives of a collective group or project.

Unexpected Problems

Challenges or issues that arise without warning and require immediate attention or novel solutions.

Common Information Effect

The tendency for group members to focus and overweigh information that is shared or known by all, potentially at the expense of unique, critical data.

Uneven Distribution

The unequal allocation of resources, wealth, opportunities, or other elements across a population, region, or among group members.