Jared Beverage Corporation uses a process costing system to collect costs related to the production of its celery flavored cola. The cola is first processed in a Mixing Department at Health and is then transterred out and finished up in the Bottling Department. The finished cases of cola are then transferred to Finished Goods Inventory. The following information relates to the company's two departments for the month of January: Mixing Bottling 10,000 5,000 65,000 Cases of cola in work in process, January 110 Cases of cola completed/transferred out during January.. Cases of cola in work in process, January 3 4,000 7,000 How noncases f col we completedandrascedtoinised Goods Inventory during January? A) 70,000 B) 63,000 C) 58,000 D) 77,000

Work in process is the inventory which is in processing to make a product. Finished goods inventory is the ready products which is completed after production process. Work in process inventory tranfers to finished goods inventory after completion after going through difference production processes / departments.

Cases of Cola transferred from mixing to bottling = 65,000

Cases of Cola transferred from bottling to finished goods = Begining WIP + Addition - Ending WIP = 5,000 + 65,000 - 7,000 = 63,000 units

andromache andromache · Answer 2 · 2022-03-15T14:51:14+01:00

andromache andromache

15-03-2022

The cases of cola that should be transferred should be 63,000

Calculation of the cases of cola:

The transferred from bottling to finished goods should be

= Begining WIP + Addition - Ending WIP

= 5,000 + 65,000 - 7,000

= 63,000 units

Hence, we can conclude that The cases of cola that should be transferred should be 63,000

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