Sew Lovely is a company that manufactures high-end silk scarves. These scarves are offered in several uniquely designed patterns that change seasonally. The head accountant is looking at the numbers for the month of August and is focused on the movement between the dying and sewing departments. He has compiled the following information about the dying department:
August 1 Work-in-Progress (WIP) Inventory (Dying): $703
Cost of Silk Added: $6,404
Conversion Costs (CC) Added: $8,200
August 31 WIP Inventory (Dying): $4,302
According to this information, what is the cost of units completed and transferred out from the WIP Inventory (Dying) account?

Question

Quizplus · Accepted Answer

In order to solve for this, envision a T-Account. All of the numbers provided should be debits to the WIP Inventory (Dying) account. Solve for a credit. This question requires use of the following formula:
 11ee941a_b6e5_869e_bdb6_37505eaa3946_TBW1041_00 $703 + $6,404 + $8,200 - X = $4,302
X = $11,005

Sew Lovely Is a Company That Manufactures High-End Silk Scarves