Question

In August, one of the processing departments at Tsuzuki Corporation had beginning work in process inventory of $24,300 and ending work in process inventory of $13,300. During the month, $286,000 of costs were added to production.

In the department's cost reconciliation report for August, the total cost to be accounted for would be:

Answer 1

The total cost to be accounted for in the department's cost reconciliation report for August is $297,000.

Step-by-step explanation:

The total cost to be accounted for in the department's cost reconciliation report for August can be calculated by adding the beginning work in process inventory and costs added to production, and then subtracting the ending work in process inventory. In this case, the beginning work in process inventory is $24,300, the costs added to production are $286,000, and the ending work in process inventory is $13,300. Therefore, the total cost to be accounted for is $24,300 + $286,000 - $13,300 = $297,000.

Answer 2

The total cost to be accounted for in the department's cost reconciliation report for August would be $311,000.

Step-by-step explanation:

To calculate the total cost to be accounted for, you sum the beginning work in process inventory with the costs added to production. In this case, the beginning work in process inventory is $24,300, and $286,000 of costs were added to production during the month. Therefore, $24,300 + $286,000 equals $310,300. Adding the ending work in process inventory of $13,300 to this total gives the final answer of $311,000.

This total cost to be accounted for is a crucial figure in cost accounting, representing the total resources (both starting inventory and costs added) that must be allocated or assigned to the production process.