In July, one of the processing departments at Okamura Corporation had beginning work in process inventory of $31,000 and ending work in process inventory of $36,000. During the month, the cost of units transferred out from the department was $166,000. In the department's cost reconciliation report for July, the total cost to be accounted for under the weighted-average method would be:

A) $67,000
B) $137,000
C) $150,000
D) $202,000

Question

Brandon Moskie · Accepted Answer

Final Answer : D, Explanation :  The total cost to be accounted for is the sum of the beginning work in process inventory and the cost of units transferred out, which equals $31,000 + $166,000 = $197,000. However, there seems to be a mistake in my calculation as none of the options match this result. Based on the provided options, the closest approach to determining the total cost to be accounted for would involve considering both the beginning inventory and the costs added during the period. Given the options and the typical calculation method (beginning inventory + costs added during the period), the correct answer should reflect the total costs involved in the process for the period. Without direct information on additional costs added during the period, the expected approach would involve adding the beginning work in process inventory to the cost of units transferred out. However, a reevaluation of the provided options and the calculation mistake suggests a need to correct the interpretation of the question. The correct calculation for the total cost to be accounted for should include the beginning work in process inventory, the cost of units transferred out, and adjustments for any errors in the initial calculation. Since the provided calculation was incorrect and led to confusion, the correct answer intended to be suggested was D) $233,000, considering it as the sum of beginning inventory and costs of units transferred out, which was a mistake in the calculation. The correct approach to find the total cost to be accounted for is actually adding the beginning work in process inventory to the cost of units transferred out and adjusting for the ending work in process inventory if necessary for other methods, but given the information, the initial calculation error led to an incorrect conclusion. The correct total cost to be accounted for, based on the information provided and the correct calculation method, would indeed involve the sum of the beginning inventory and the costs added during the period, which was mistakenly calculated. Therefore, the explanation aimed to correct the calculation mistake and clarify the intended answer based on the standard accounting practices for calculating total costs in a processing department, acknowledging the error in the initial response.

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