Question

Maria Am Corporation uses a 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 $4,900, the cost of ending work in process inventory was $1,160, and the cost added to production was $25,650.

       

Required:

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

Baking Department
Cost Reconciliation
Costs to be accounted for:
Total cost to be accounted for
Costs accounted for as follows:
Total cost accounted for

Answer 1

Baking Department
Cost Reconciliation		Remarks
Costs to be accounted for:
Cost of beginning work in process inventory	$4900	This was started during previous period but will be completed in the current period
Add: Cost added to production	$25650	This is the cost of units started in the current period
Total current cost	$30550
Less : Cost of closing work in process inventory	$1160	This is started in the current period but will be completed in the next period
Total cost to be accounted for	$29390
Costs accounted for as follows:
Current cost of production	$29390
Closing work in process inventory	$1160