Reference: 04-03 Madsen Company Uses the Weighted-Average Method in Its Process Costing

Multiple Choice

Reference: 04-03
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.
-The total cost of the October 31 work in process inventory was?

A) $35,000.
B) $43,750.
C) $78,750.
D) $41,250.