On a cost of production report, the total of the costs of products transferred out of a department and the cost of the ending work in process still in the department must equal the cumulative total cost for the department.

Question

Quizplus · Accepted Answer

This is because the total cost for the department includes both the costs of the products transferred out and the cost of the ending work in process, so these two should add up to the cumulative total cost. If they do not match, it may indicate a calculation error or an issue with the production process.

On a Cost of Production Report, the Total of the Costs