In February, one of the processing departments at Brandstetter Corporation had beginning work in process inventory of $24,000 and ending work in process inventory of $18,000. During the month, the cost of units transferred out from the department was $249,000. The company uses the first-in, first-out method in its process costing system.In the department's cost reconciliation report for February, the costs added to production in the department would be:
A) $243,000
B) $255,000
C) $225,000
D) $231,000

Question

Quizplus · Accepted Answer

The costs added to production can be calculated by taking the cost of units transferred out ($249,000) and subtracting the beginning work in process inventory ($24,000), then adding the ending work in process inventory ($18,000). This results in $243,000.

In February, One of the Processing Departments at Brandstetter Corporation