Cost Management: A Strategic Emphasis 5th Edition by David Stout, Edward Blocher, Gary Cokins

Exercise 27

There is no spoilage, the beginning work-in-process inventory is 6,000 units, and the ending work-in- process inventory is 4,000 units for the second department in a two department process. What is the number of units transferred in to the second department if good output of the second department is 35,000 units?

Step 1 of 3

Process Costing:

Process costing is a costing system where costs are accumulated as per the process and department and then assigns the cost to the homogeneous products. It is called as a process costing because cost is calculated process or department wise instead of product wise in this system.