Question

In February, one of the processing departments at Whisenhunt Corporation had beginning work in process inventory of $35,000 and ending work in process inventory of $18,000. During the month, the cost of units transferred out from the department was $443,000. In the department's cost reconciliation report for February, the total cost to be accounted for under the weighted-average method would be:

Answer 1

Answer:

$426,000

Explanation:

In order to arrive at the cost to be accounted for, the cost incurred on the closing WIP (Work-In-Progress) and the units transferred out is added.

The cost incurred on the opening WIP is deducted whenever the cost to be accounted for is calculated.

Calculate the cost to be accounted for in the department as shown below.  

Cost to be accounted for = Closing WIP + Transferred out to department − Opening WIP

Given:

Closing WIP = $18,000

Transferred out to department  = $443,000

Opening WIP = $35000

Cost to be accounted for = $18000 + $443000 − $35000

=$426,000

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