In August, one of the processing departments at Knepp Corporation had beginning work in process inventory of $17,000 and ending work in process inventory of $13,000. During the month, $178,000 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)$182,000
B)$195,000
C)$169,000
D)$165,000

Question

Quizplus · Accepted Answer

Cost of units transferred out = Cost of beginning work in process inventory + Cost added to production - Cost of ending work in process inventory = $17,000 + $178,000 - $13,000 = $182,000

In August, One of the Processing Departments at Knepp Corporation