Madsen Company Uses the Weighted-Average Method in Its Process Costing

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.