Question

In August, one of the processing departments at Tsuzuki Corporation had beginning work in process inventory of $24,600 and ending work in process inventory of $13,600. During the month, $289,000 of costs were added to production. In the department's cost reconciliation report for August, the total cost to be accounted for would be:
a. $37,000
b. $307,000
c. $590,000.
d. $614,000

Answer 1

Answer:

Cost accounted for= $300,000

Explanation:

Giving the following information:

beginning work in process inventory of $24,600

ending work in process inventory of $13,600.

During the month, $289,000 of costs were added to production.

The cost to be accounted for is the cost incurred during production and send to finished goods inventory. Therefore, we need to use the following formula:

Cost of the period= beginning inventory + cost added - ending inventory

Cost of the period= 24,600 + 289,000 - 13,600= $300,000