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29 April, 11:24

In July, one of the processing departments at Okamura Corporation had beginning work in process inventory of $22,000 and ending work in process inventory of $27,000. During the month, the cost of units transferred out from the department was $157,000. In the department's cost reconciliation report for July, the total cost to be accounted for under the weighted-average method would be:

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  1. 29 April, 13:45
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    The total cost to be accounted for under the weighted-average method would be $184,000

    Explanation:

    Given information,

    Beginning work in process inventory = $22,000

    Ending work in process inventory = $27,000.

    The cost of units transferred out from the department = $157,000

    Under weighted average method, the beginning Work in process inventory is not considered. So, the total cost would be displayed below.

    Total cost = The cost of units transferred out from the department + Ending work in process inventory

    = $157,000 + $27,000

    = $184,000

    Thus, the total cost to be accounted for under the weighted-average method would be $184,000
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