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

Question

Quizplus · Accepted Answer

In a process costing system, the cost reconciliation formula is: 
Beginning WIP balance + Cost added during the period = Cost transferred out during the period + Ending WIP balance. This formula ensures that all costs are accounted for and reconciled at the end of the period. Beginning WIP balance represents the costs incurred in the prior period that were not completed, cost added during the period represents the current period's costs, cost transferred out during the period represent the costs of completed units, and ending WIP balance represents the costs of incomplete units at the end of the period. Choice B accurately represents this formula.

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