Question

Schroeder Baking Corporation uses a process costing system in its large-scale baking operations. The Mixing Department is one of the company’s processing departments. In the Mixing Department in July, the cost of beginning work in process inventory was $4,250, the cost of ending work in process inventory was $3,850, and the cost added to production was $46,360.

Required:

Prepare a cost reconciliation report for the Mixing Department for July.

	Mixing Department Cost Reconciliation Costs to be accounted for: Total cost to be accounted for Costs accounted for as follows: Total cost accounted for

Answer 1

Mixing Department Cost Reconciliation Costs to be accounted for: Cost of beginning work in process inventory Costs added to production during the period Total cost to be accounted for Costs accounted for as follows: Cost of ending work in process inventory Cost of units completed and transferred out Total cost accounted for $ 4,250 $ 46,360 $ 50,610 $ 3,850 $ 46,760 $ 50,610 Working Notes: Cost of units completed and transferred out = Cost of beginning work in process inventory + Costs added to production during the period - Cost of ending work in process inventory = $4,250+$46,360-$3,850 = $46,760