In December, one of the processing departments at Rumsey Corporation had ending work in process inventory of $21,000. During the month, $110,000 of costs were added to production and the cost of units transferred out from the department was $99,000. In the department's cost reconciliation report for January, the cost of beginning work in process inventory for the department would be:
A)$32,000
B)$78,000
C)$89,000
D)$10,000

Question

Quizplus · Accepted Answer

The beginning work in process inventory can be calculated using the formula:
Beginning work in process inventory = Ending work in process inventory + Costs added to production - Cost of units transferred out
Substituting the given values:
Beginning work in process inventory = $21,000 + $110,000 - $99,000
Beginning work in process inventory = $32,000
Therefore, the correct answer is choice letter A) $32,000.

In December, One of the Processing Departments at Rumsey Corporation