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The Gasson Company uses the weighted-average method in its process costing system. The company's ending work in process inventory consists of 16,000 units, The ending work in process inventory is 100% complete with respect to materials and 80% complete with respect to labor and overhead. If the costs per equivalent unit for the period $3.20 for the materials and $2.30 for labor and overhead, what is the balance of the ending work in process inventory account would be: (Do not round Cost per equivalent unit)
a. $80,640
b. $72,140
c. $88,000
d. $50,700
Calculate the increase or decrease in profits for the divisions and the company as a whole (four separate computations) if the agreement is enforced.
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