The Following Amounts Were Selected from the Production Report of Doggie

question 82

Multiple Choice

The following amounts were selected from the production report of Doggie Donuts Corporation: Actual units in production 55,000
Equivalent units (materials) 55,000
Equivalent units (conversion) 45,000
Cost per equivalent unit (materials) $1.50
Cost per equivalent unit (conversion) $1.10
Doggie Donuts uses the weighted average costing method in preparing its production reports. What must Doggie Donuts' total production cost to be accounted for have been?

• A) $49,500
• B) $82,500
• C) $132,000
• D) $150,000

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Definitions:

Equilibrium

A state in which market supply and demand balance each other, and, as a result, prices become stable.

Supply Curves

Graphical representations showing the relationship between the price of a good or service and the quantity of that good or service that a supplier is willing to offer for sale.

Price Floors

A government- or authority-imposed minimum price that sellers must charge for a good or service, essentially preventing prices from falling below this set level.

Ceiling Prices

Maximum prices set by the government on certain goods and services to prevent excessive pricing during shortages or inflationary periods.