The Following Amounts Were Selected from the Production Report of Doggie

question 62

Multiple Choice

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

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

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Definitions:

Current Asset

Resources anticipated to be transformed into cash, disposed of, or utilized within one year or during the business's standard operating period.

Depreciation Expense

An accounting method that spreads the purchase cost of a physical asset minus its salvage value over its expected useful life.

Factory Overhead

All indirect costs associated with manufacturing, including utilities, depreciation, and salaries for managerial staff, not directly tied to production.

Work in Process Inventory

Inventory that includes all materials, labor, and overhead costs for products that are in the manufacturing process but not yet completed.