In December, one of the processing departments at Stiel Corporation had ending work in process inventory of $38,000. During the month, $119,000 of costs were added to production and the cost of units transferred out from the department was $92,000.
-In the department's cost reconciliation report for December, the cost of beginning work in process inventory for the department would be:
A) $54,000
B) $65,000
C) $11,000
D) $81,000

Question

Quizplus · Accepted Answer

To calculate the beginning work in process inventory, we need to use the formula:
Beginning Work in Process Inventory + Costs added to production = Ending Work in Process Inventory + Cost of units transferred out
Rearranging the formula, we get:
Beginning Work in Process Inventory = Ending Work in Process Inventory + Cost of units transferred out - Costs added to production
Substituting the values given in the question,
Beginning Work in Process Inventory = $38,000 + $92,000 - $119,000
Beginning Work in Process Inventory = $11,000
Therefore, the answer is C.

In December, One of the Processing Departments at Stiel Corporation