In September, one of the processing departments at Wielgus Corporation had beginning work in process inventory of $27,000 and ending work in process inventory of $10,000. During the month, $296,000 of costs were added to production. In the department's cost reconciliation report for September, the cost of units transferred out of the department would be:
A)$313,000
B)$323,000
C)$303,000
D)$286,000

Question

Quizplus · Accepted Answer

The cost of units transferred out is calculated as: Beginning WIP Inventory + Costs Added - Ending WIP Inventory = $27,000 + $296,000 - $10,000 = $313,000.

In September, One of the Processing Departments at Wielgus Corporation