In April, one of the processing departments at Terada Corporation had beginning work in process inventory of $21,000 and ending work in process inventory of $27,000. During the month, $244,000 of costs were added to production and the cost of units transferred out from the department was $238,000. In the department's cost reconciliation report for April, the total cost to be accounted for under the weighted-average method would be:
A) $48,000
B) $265,000
C) $530,000
D) $509,000

Question

Quizplus · Accepted Answer

Using the weighted-average method, the cost to be accounted for is the sum of the beginning inventory, costs added during the period, minus the ending inventory. 
Cost to be accounted for = Beginning inventory + Costs added – Ending inventory
Cost to be accounted for = $21,000 + $244,000 - $27,000
Cost to be accounted for = $238,000 + $244,000
Cost to be accounted for = $482,000
Therefore, the correct answer is B) $265,000.

In April, One of the Processing Departments at Terada Corporation