Question

Schroeder Baking Corporation uses a process costing system in its large-scale baking operations. The Mixing Department is one of the company’s processing departments. In the Mixing Department in July, the cost of beginning work in process inventory was $4,290, the cost of ending work in process inventory was $3,850, and the cost added to production was $46,400.

Required:

Prepare a cost reconciliation report for the Mixing Department for July.

Answer 1

Total costs to account for = Beginning Work in Process Cost + Costs added this period

= 4,290 + 46,400

= $50,690

Total costs to account for = Cost assigned to units completed and transferred + Cost assigned to ending work in process inventory

50,690 = Cost assigned to units completed and transferred + 3,850

Cost assigned to units completed and transferred = $46,840

Cost reconciliation report for the Mixing Department for July

Beg. Work in Process Cost	4,290
+ Costs added this period	46,400
Total costs to account for	50,690
Cost assigned to units completed and transferred	46,840
+ Cost assigned to ending work in process inventory	3,850
Total costs accounted for	50,690