Question

In June, one of the processing departments at Furbush Corporation had ending work in process inventory of $13,100. During the month, $415,000 of costs were added to production and the cost of units transferred out from the department was $437,000.
In the department’s cost reconciliation report for January, the cost of beginning work in process inventory for the department would be:

Multiple Choice

$423,900

$401,900

$8,900

$35,100

Answer 1

Answer:

$35,100

Explanation:

Use following formula

Cost of Ending work in process inventory = Cost of beginning work in process inventory + Cost added during the month - Cost transferred during the month

$13100 = Cost of beginning work in process inventory + $415,000 - $437,000

$13100 = Cost of beginning work in process inventory - $22,000

Cost of beginning work in process inventory = $13100 + $22,000

Cost of beginning work in process inventory = $$35,100