Asked by Rayna Kordonowy on May 03, 2024
Verified
In June, one of the processing departments at Sorto Corporation had beginning work in process inventory of $30,000. During the month, $345,000 of costs were added to production and the cost of units transferred out from the department was $346,000. Required:Construct a cost reconciliation report for the department for the month of June.
Cost Reconciliation Report
A financial document used to compare and reconcile the costs incurred with the costs allocated to products or services, often in process costing systems.
Work in Process Inventory
The cost of unfinished goods in the manufacturing process at a specific point in time.
- Master and implement the weighted-average approach in process costing calculations.
- Generate a cost reconciliation document in accordance with a process costing structure.
Verified Answer
CB
Caitlin BowersMay 05, 2024
Final Answer :
Cost of beginning work in process inventory + Costs added to production = Cost of ending working in process inventory + Cost of units transferred out$30,000 + $345,000 = Cost of ending working in process inventory + $346,000Cost of ending working in process inventory = $30,000 + $345,000 − $346,000
Learning Objectives
- Master and implement the weighted-average approach in process costing calculations.
- Generate a cost reconciliation document in accordance with a process costing structure.
Related questions
In October, One of the Processing Departments at Ingersoll Corporation ...
Hutchcroft Corporation Uses the Weighted-Average Method in Its Process Costing ...
In December, One of the Processing Departments at Bonine Corporation ...
Claus Corporation Manufactures a Single Product and Uses Process Costing ...
Walbin Corporation Uses the Weighted-Average Method in Its Process Costing ...