Annie, the accountant for a local cookie factory, has been finalizing costing information for the month so that the books can be updated and closed. After finishing the journal entries for the mixing department, she is now focusing on the baking department. The baking department began with Work-in-Progress (WIP) Inventory of $967, and added $1,340 of cookie materials, $3,566 of Direct Labor, and $3,028 of Manufacturing Overhead in the beginning WIP Inventory. It has completed $15,626 costs of units in the process and reported $347 of ending inventory in WIP. What is the total cost of units Transferred-In (TI) from the mixing department?

Question

Quizplus · Accepted Answer

To solve this, determine the total cost of units TI from the mixing department. It can be calculated as: Total Cost of Units TI from the mixing department = Total Cost of Units Completed - Costs of Units in Beginning WIP Inventory - Costs Added to Units in Beginning WIP Inventory this Period + Costs of Units in Ending WIP inventory = $15,626 - $967 - $7,934 + $347 = $7,072.

Annie, the Accountant for a Local Cookie Factory, Has Been