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:

Fluke

A type of parasitic flatworm, belonging to the class Trematoda, that infects various animals, including humans.

Elephantiasis

Disease caused by a roundworm called the filarial worm.

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A phylum of worms known as Nematoda, characterized by their elongated, cylindrical, and unsegmented bodies.

Pseudocoelom

Body cavity lying between the digestive tract and body wall that is incompletely lined by mesoderm.