Question

Marian Ann Corporation uses a 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. Prepare a cost reconciliation report for the Baking Department for June.

Answer 1

Ans.	Banking Department
	Cost Reconciliation
	Costs to be accounted for:
	Cost of beginning work in process inventory	$3,570
	Costs added to production during the period	$43,120
	Total cost to be accounted for	$46,690
	Costs accounted for as follows:
	Cost of ending work in process inventory	$2,860
	Cost of units completed and transferred out	$43,830
	Total cost accounted for	$46,690
	*Cost of units completed and transferred out   =    Beginning WIP inventory + Cost added to production - Ending WIP inventory
	$3,570 + $43,120 - $2,860
	$43,830