In August, One of the Processing Departments at Marchese Corporation

question 72

Essay

In August, one of the processing departments at Marchese Corporation had beginning work in process inventory of $34,000 and ending work in process inventory of $35,000. During the month, $401,000 of costs were added to production. The company uses the FIFO method in its process costing system.
Required:
Construct a cost reconciliation report for the department for the month of August.

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Definitions:

Ounce

A unit of weight in the avoirdupois system, equal to 1/16 of a pound or approximately 28.35 grams.

Coffee

A brewed drink prepared from roasted coffee beans, the seeds of berries from certain Coffea species.

Profit

The financial gain realized when the revenue from business activities exceeds the expenses, costs, and taxes associated with sustaining the activity.

Gram

A unit of weight that is one thousandth part of a kilogram, measured in the metric system.