Question

Maria Am Corporation uses the weighted-average method in its process costing system. The Baking Department is one of the processing departments in its strudel manufacturing facility. In June in the Baking Department, the cost of beginning work in process inventory was $4,810, the cost of ending work in process inventory was $1,100, and the cost added to production was $25,750.

Prepare a cost reconciliation report for the Baking Department for June.

Answer 1

Reconciliation statent :

Costs to be accounted for:

Cost of beginning work in process inventory 4,810

Costs added to production during the period 25,750

Total cost to be accounted for = 30560

Costs accounted for as follows:

Cost of ending work in process inventory 1,100

Cost of units completed and transferred out 29,460

Total cost accounted for 30560

Explanation:

The cost of units completed and transferred out can be deduced as follows:

Cost of beginningwork in processinventory+Costs addedto productionduring the period=Cost of endingwork in processinventory+Cost of unitscompleted andtransferred out$4,810+$25,750=$1,100+Cost of unitscompleted andtransferred out

Cost of units completed and transferred out= $4,810 + $25,750 −$1,100 Cost of units completed and transferred out= $29,460