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 $4,880, the cost of ending work in process inventory was $1,150, and the cost added to production was $25,150.

Required:  

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

Answer 1

Solution:

Cost Reconciliation Report for the Baking Department for June

Baking Department
Cost Reconciliation
For the month of June
Costs to be accounted for:
Cost of beginning work in process inventory[A]	$             4,880
Cost added to production during the period[B]	$          25,150
Total cost to be accounted for[C=A+B]	$          30,030
Cost accounted for as follows:
Cost of ending work in process inventory[D]	$          (1,150)
Cost of unit completed and transferred out [C-D]	$          28,880
Total cost accounted for	$          30,030