Franklin Company Manufactures a Product That Passes Through Two Processes

Franklin Company manufactures a product that passes through two processes: Mixing and Moulding.All manufacturing costs are added uniformly in the Mixing Department.Information for the Mixing Department for October follows: $\begin{array}{llr}\text { Work in process, October 1: } &\\ \text { Units ( \( 35 \% \) complete) } &7,500\\ \text { Direct materials} &\$36,000\\ \text { Direct labour } &\$45,000\\ \text {Overhead } &\$15,000\\\end{array}$
During October,37,500 units were completed and transferred to the Moulding Department.The following costs were incurred by the Mixing Department during October:
$\begin{array}{lr}\text { Direct materials } & \$ 135,000 \\\text { Direct labour } & 180,000 \\\text { Overhead } & 45,000\end{array}$ There were 3,750 units that were 80 percent complete remaining in Mixing at October 30.What are the equivalent units of production using the weighted average method?

A) 30,000 units
B) 34,500 units
C) 40,500 units
D) 43,125 units

Correct Answer:

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