In August, one of the processing departments at Khatak Corporation had beginning work in process inventory of $34,000 and ending work in process inventory of $30,000. During the month, the cost of units transferred out from the department was $374,000. Required:Construct a cost reconciliation report for the department for the month of August.
What will be an ideal response?
Cost of beginning work in process inventory + Costs added to production = Cost of ending working in process inventory + Cost of units transferred out
$34,000 + Costs added to production = $30,000 + $374,000
Costs added to production = $30,000 + $374,000 ? $34,000 = $370,000
| Costs to be accounted for: | ||
| Cost of beginning work in process inventory | $ | 34,000 |
| Costs added to production during the month | 370,000 | |
| Total cost to be accounted for | $ | 404,000 |
| Costs accounted for as follows: | ||
| Cost of ending work in process inventory | $ | 30,000 |
| Cost of units transferred out | 374,000 | |
| Total cost accounted for | $ | 404,000 |
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