In April, one of the processing departments at Terada Corporation had beginning work in process inventory of $36,000 and ending work in process inventory of $42,000. During the month, $259,000 of costs were added to production and the cost of units transferred out from the department was $253,000. In the department's cost reconciliation report for April, the total cost to be accounted for under the weighted-average method would be:
A) $78,000
B) $295,000
C) $590,000
D) $554,000

Question

Quizplus · Accepted Answer

The total cost to be accounted for under the weighted-average method would be:

Beginning work in process inventory + Costs added to production = Total cost to be accounted for
$36,000 + $259,000 = $295,000

This is the total cost of the beginning work in process inventory, the costs added to production, and any costs that may have been incurred in the department during the month. The cost of units transferred out is not included in this calculation. Therefore, the correct answer is B.

In April, One of the Processing Departments at Terada Corporation