Asked by Clara McNulty on May 10, 2024
Verified
In the cost reconciliation report under the first-in, first-out method, the costs to be accounted for equals the cost of ending work in process inventory plus the costs added during the period.
Cost Reconciliation Report
A financial report that reconciles estimated costs with actual costs in manufacturing or project management.
Costs Added
An increase in the total costs resulting from an action or decision, encompassing both direct and indirect expenses.
- Formulate and comprehend a cost reconciliation report through the application of FIFO and weighted-average approaches.
Verified Answer
TM
Tameaka MayersMay 14, 2024
Final Answer :
False
Explanation :
In the cost reconciliation report under the first-in, first-out (FIFO) method, the costs to be accounted for equal the cost of beginning work in process inventory plus the costs added during the period. The cost of ending work in process inventory is part of the costs accounted for, not added to the costs added during the period.
Learning Objectives
- Formulate and comprehend a cost reconciliation report through the application of FIFO and weighted-average approaches.
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