The following amounts were selected from the production report of chandon corporation:

actual units in production equivalent units (materials) equivalent units (conversion)
cost per equivalent unit (materials) cost per equivalent unit (conversion)

42,000 42,000 39,000 $1.10 $0.90

chandon uses the weighted average method in preparing its production reports. chandon's total production cost to be accounted for must have been a. $89,100
b. $84,000
c. $81,300

d. $72,900

correct option is C. $81,300

Explanation:

given data

Actual units in production = 42,000

Equivalent units (materials) = 42,000

Equivalent units (conversion) = 39,000

Cost per equivalent unit (materials)  = $1.10

Cost per equivalent unit (conversion) = $0.90

solution

we get here Equivalent Cost for Material that is

Equivalent Cost for Material = 42000 × 1.1

Equivalent Cost for Material = 46200

and Equivalent Cost of Labor will be here as

Equivalent Cost of Labor = 39000 × 0.9

Equivalent Cost of Labor = 35100

so total cost of production will be

total cost of production = 46200  + 35100

total cost of production = $81300

so correct option is C. $81,300

this business is a price setter.

hope this

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