Question

Maria Am Corporation uses the weighted-average method in its process costing system. The Baking Department is one of the processing departments in its strudel manufacturing facility. In June in the Baking Department, the cost of beginning work in process inventory was $3,570, the cost of ending work in process inventory was $2,860, and the cost added to production was $43,120. Required: Prepare a cost reconciliation report for the Baking Department for June.

Answer 1

To prepare a cost reconciliation report for the Baking Department in June, calculate the cost of units completed and transferred out and the cost of units in ending work in process (WIP) inventory. The cost reconciliation report shows a cost of units completed and transferred out of $43,830 and a cost of units in ending WIP inventory of $2,000, for a total cost of $45,830.

Step-by-step explanation:

To prepare a cost reconciliation report for the Baking Department in June, we need to calculate the cost of units completed and transferred out, as well as the cost of units in ending work in process (WIP) inventory.

1. Calculate the cost of units completed and transferred out by subtracting the cost of ending WIP inventory from the sum of the beginning WIP inventory and the cost added to production. In this case, the cost of units completed and transferred out is $3,570 + $43,120 - $2,860 = $43,830.
2. Calculate the cost per equivalent unit by dividing the cost of units completed and transferred out by the number of equivalent units.
3. Calculate the cost of units in ending WIP inventory by multiplying the cost per equivalent unit by the number of equivalent units in ending WIP inventory. In this case, the cost of units in ending WIP inventory is $20 x 100 = $2,000.

Therefore, the cost reconciliation report for the Baking Department in June is as follows:

Category Cost of units completed and transferred out$43,830Cost of units in ending WIP inventory$2,000Total cost$45,830

Answer 2

Cost reconciliation report

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For the Baking Department for June

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Cost of beginning work in process inventory $4,840

Cost added to production $25,750

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Total Cost to be accounted for $30,590

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Cost of units Completed and transferred $30,590 - $1,130

= $29,460

Cost of ending work in process inventory $1,130

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Total Cost to be accounted for $30,590

=============================================================

Step-by-step explanation:

Given:

The cost of beginning work in process inventory = $3,570

The cost of ending work in process inventory = $2,860

The cost added to production = $43,120

Now,

Cost reconciliation report

============================================================

For the Baking Department for June

============================================================

Cost of beginning work in process inventory $4,840

Cost added to production $25,750

-----------------------------------------------------------------------------------------------------

Total Cost to be accounted for $30,590

=============================================================

=============================================================

Cost of units Completed and transferred $30,590 - $1,130

= $29,460

Cost of ending work in process inventory $1,130

------------------------------------------------------------------------------------------------------

Total Cost to be accounted for $30,590

=============================================================