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In April, one of the processing departments at Terada Corporation had beginning work in process inventory of $24,000 and ending work in process inventory of $30,000. During the month, $247,000 of costs were added to production and the cost of units transferred out from the department was $241,000. In the department's cost reconciliation report for April, the total cost to be accounted for under the weighted-average method would be:_______a. $265,000b. $48,000c. $530,000d. $509,000

Respuesta :

Answer:

a. $265,000

Explanation:

Process costing is one of method to assign cost to manufactured unit. This method is most commonly used for identical units produced.

Terada Corporation also uses process costing system. In April $241,000 units were transferred out of the department. To identify the total cost under weighted average method we can add up beginning work in process and units transferred out. We get $265,000 if we add up beginning work in process inventory and  cost of units transferred out from the department.

= $24,000 + $241,000

= $265,000.

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