Question

In Feb, one of the processing departments at Whisenhunt corp had beg WIP inventory of $35,000 and end WIP inventory of $11,000. During the month, the cost of units transferred out from the dept was $410,000. In the department's cost reconciliation report for Feb, the total cost to be accounted for would be:

1) $46,000
2) $807,000
3) $842,000
4) $421,000

Answer 1

The total cost to be accounted for in the department's cost reconciliation report for February is $842,000. The correct option is 3.

Step-by-step explanation:

The total cost to be accounted for in the department's cost reconciliation report for February would be $842,000 (Option 3).

To determine the total cost to be accounted for, we need to calculate the cost of units started and completed during the month. This can be done using the formula:

Total Cost to be Accounted for = Beginning Work-in-Process (WIP) Inventory + Cost of Units Transferred Out - Ending WIP Inventory

Using the information given:

Beginning WIP Inventory = $35,000

Cost of Units Transferred Out = $410,000

Ending WIP Inventory = $11,000

Plugging these values into the formula:

Total Cost to be Accounted for = $35,000 + $410,000 - $11,000 = $842,000

Therefore, the correct answer is option 3, $842,000.