In May, one of the processing departments at Stitzel Corporation had beginning work in process inventory of $16,000 and ending work in process inventory of $27,000. During the month, the cost of units transferred out from the department was $160,000. In the department's cost reconciliation report for May, the total cost to be accounted for under the weighted-average method would be:
A)$358,000
B)$43,000
C)$374,000
D)$187,000

Question

Quizplus · Accepted Answer

The total cost to be accounted for is the sum of the beginning work in process inventory, the cost of units transferred out, and the ending work in process inventory. Therefore, $16,000 (beginning) + $160,000 (transferred out) + $27,000 (ending) = $203,000. However, since the question asks for the total cost to be accounted for, it should be the sum of beginning inventory and costs added during the period, which is $160,000 (transferred out) + $27,000 (ending) = $187,000.

In May, One of the Processing Departments at Stitzel Corporation