In August, one of the processing departments at Tsuzuki Corporation had beginning work in process inventory of $24,000 and ending work in process inventory of $13,000. During the month, $283,000 of costs were added to production.

In the department's cost reconciliation report for August, the cost of units transferred out of the department would be

To find the cost of units transferred out of the department, we can use the following formula derived from a cost reconciliation approach:

\[
\text{Cost of units transferred out} = \text{Beginning Work in Process (WIP)} + \text{Costs added during the month} - \text{Ending Work in Process (WIP)}
\]

From the problem, we have:
- Beginning WIP = \$24,000
- Ending WIP = \$13,000
- Costs added during the month = \$283,000

Substituting the values into the formula:

\[
\text{Cost of units transferred out} = 24,000 + 283,000 - 13,000
\]

\[
\text{Cost of units transferred out} = 294,000
\]

Thus, the cost of units transferred out of the department is **$294,000**.

Would you like further details or explanations?

Here are 5 related questions to expand on this topic:
1. How do we determine the equivalent units of production in a department?
2. What is the difference between weighted-average and FIFO methods in cost accounting?
3. How do direct and indirect costs affect departmental cost calculations?
4. What role does work in process (WIP) play in cost reconciliation?
5. Can you explain how to account for partially completed units in a production department?

**Tip:** Always ensure the accuracy of the beginning and ending inventory figures when preparing a cost reconciliation report. Misreporting can lead to significant errors in determining production costs.

In August, one of the processing departments at Tsuzuki Corporation had beginning work in process inventory of $24,000 and ending work in process inventory of $13,000. During the month, $283,000 of costs were added to production. In the department's cost reconciliation report for August, the cost of units transferred out of the department would be?

Learn how to calculate the cost of units transferred out in Tsuzuki Corporation's processing department. With beginning work in process of $24,000, ending WIP of $13,000, and $283,000 of production costs added, find out how these values determine the cost of units transferred. Ideal for cost accounting students and professionals.

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