Gilbert Company uses the weighted-average method in its process costing system. The beginning work in process inventory in a particular department consisted of 13,000 units, 100% complete with respect to materials cost and 40% complete with respect to conversion costs. The total cost in the beginning work in process inventory was $70,500. A total of 22,000 units were transferred out of the department during the month. The costs per equivalent unit were computed to be $1.80 for materials and $2.60 for conversion costs. The total cost of the units completed and transferred out of the department was: Select one: a. 167300 b. 57200 c. 96800 d. 127700

Morpet Ltd manufacturers a number of specialised electronic components, including the advanced X1000. Morpet Ltd has the capacity to produce 10 000 units of X1000 per year. Currently it is operating at 85 per cent capacity. The selling price for X1000 is $100 per unit. The variable cost per unit is $25. Fixed cost allocated to producing X1000 is $350 000 per year. Morpetn Ltd receives a special order for 2000 units of X1000. The opportunity cost associated with taking this special order is:

Select one:

a. $37500

b. $3875000

c. $250000

d. $375000