When using a process costing system,the formula for reconciling the costs of production is

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In process costing, the costs are accumulated for each department or process rather than for each individual unit. The reconciliation of costs involves comparing the beginning work in process (WIP) balance with the cost added during the period, and then subtracting the cost of goods transferred out and the ending WIP balance. Therefore, the formula is Beginning WIP balance + Cost added during the period = Cost transferred out during the period + Ending WIP balance. Option B is the only choice that presents this formula.

When Using a Process Costing System,the Formula for Reconciling the Costs