Edwards Company produces calendars in a one-department process. The following information is available:
The units still in process are 100 percent complete with respect to direct materials and 60 percent complete with respect to conversion costs.
-In a production-cost report, the total costs accounted for is equal to the cost of units completed and transferred plus the cost of
A) beginning work-in-process.
B) the units started and finished.
C) the units completed but still on hand.
D) ending work-in-process.

Question

Edwards Company produces calendars in a one-department process. The following information is available:
  The units still in process are 100 percent complete with respect to direct materials and 60 percent complete with respect to conversion costs.
-In a production-cost report, the total costs accounted for is equal to the cost of units completed and transferred plus the cost of
A) beginning work-in-process. 
B) the units started and finished. 
C) the units completed but still on hand. 
D) ending work-in-process.

Quizplus · Accepted Answer

The cost of ending work-in-process must be added to the cost of units completed and transferred to determine the total costs accounted for in a production-cost report.

Edwards Company Produces Calendars in a One-Department Process