Answer and Explanation:
The construction of the cost reconciliation report for the department for the month of July is shown below:
Cost to be Accounted For :
Beginning Work in process inventory $29,000
Add: Cost added to production $205,000
Total Cost to Be accounted For $ 234,000
Cost Accounted for as Follows
Cost of Ending Work in process inventory $31,000
Add: Cost of units Transferred Out $203,000
Total Cost Accounted For $234,000
The total cost accounted for could be computed by two methods
1. Adding the cost added to the beginning work in process inventory
2. Adding the cost of units transferred out to the ending work in process inventory
