In August, one of the processing departments at Tsuzuki Corporation had beginning work in process inventory of $24,000 and ending work in process inventory of $13,000. During the month, $283,000 of costs were added to production.In the department's cost reconciliation report for August, the cost of units transferred out of the department would be:
A) $294,000
B) $307,000
C) $281,000
D) $270,000

Question

Quizplus · Accepted Answer

The cost of units transferred out is calculated by adding the costs added to production ($283,000) to the beginning work in process inventory ($24,000) and then subtracting the ending work in process inventory ($13,000). This results in $294,000 ($283,000 + $24,000 - $13,000).

In August, One of the Processing Departments at Tsuzuki Corporation