Asked by Neupane Saroj on May 31, 2024
Verified
How many units are in ending work in process inventory in the first processing department at the end of the month?
A) 1,300
B) 900
C) 7,200
D) 700
Work in Process
Inventory that includes goods that are in the production process but are not yet complete.
Processing Department
A unit or area in a manufacturing facility where raw materials are processed into finished goods.
- Understand the concept of work in process inventory and how to calculate ending units.
Verified Answer
JW
Jessica WatsonJun 06, 2024
Final Answer :
A
Explanation :
The problem does not provide information on how many units were started or completed during the month, so we cannot calculate the ending inventory using those values. However, the problem does state that there were 2,500 units in beginning inventory and 1,200 units transferred out to the next department during the month. Therefore, the only way to determine the ending inventory is to use the formula:
Ending Inventory = Beginning Inventory + Units Started - Units Completed - Transferred Out
We do not have information on units started or completed, but we know that there were 900 units transferred in from the previous department. Therefore:
Ending Inventory = 2,500 + 900 - Units Completed - 1,200
Ending Inventory = 3,200 - Units Completed
The problem does not provide any other relevant information, so we cannot determine the value of Units Completed. Therefore, the only answer choice that could be correct is A) 1,300, which represents the ending inventory if Units Completed were equal to 1,900.
Ending Inventory = Beginning Inventory + Units Started - Units Completed - Transferred Out
We do not have information on units started or completed, but we know that there were 900 units transferred in from the previous department. Therefore:
Ending Inventory = 2,500 + 900 - Units Completed - 1,200
Ending Inventory = 3,200 - Units Completed
The problem does not provide any other relevant information, so we cannot determine the value of Units Completed. Therefore, the only answer choice that could be correct is A) 1,300, which represents the ending inventory if Units Completed were equal to 1,900.
Explanation :
Units in ending work in process = Units in beginning work in process + Units started into production - Units transferred to the next department = 600 + 7,800 -7,100 = 1,300
Learning Objectives
- Understand the concept of work in process inventory and how to calculate ending units.
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