Question

In August, one of the processing departments at Tsuzuki Corporation had beginning work in process inventory of $24,000 and ending work in process inventory of $13,000. During the month, $283,000 of costs were added to production. In the department's cost reconciliation report for August, the cost of units transferred out of the department would be: Multiple Choice $294,000 $270,000 $281,000 $307,000

Answer 1

$294,000

Step-by-step explanation:

The computation of the cost of units transferred out of the department would be shown below:

= Opening work in process + cost added to the production - ending work in process

= $24,000 + $283,000 - $13,000

= $294,000