Sheldon Toys Inc manufactures toy cannons. This period, beginning WIP inventory was 4000 units that were 30 per cent complete, and ending inventory was 2000 units that were 40 per cent complete. Beginning and ending WIP costs were $10 000 and $7000 respectively. Further, 9000 units were produced this year at a cost of $25 000.
-How many physical units were worked on this period?
A) 10 000
B) 9000
C) 13 000
D) 11 000

Question

Quizplus · Accepted Answer

The number of physical units worked on during the period is calculated by adding the units started and completed during the period to the ending work in process inventory and then subtracting the beginning work in process inventory. This is calculated as: Units started and completed (9000) + Ending WIP (2000) - Beginning WIP (4000) = 7000 units worked on, plus the beginning WIP of 4000 units, totaling 11,000 units.

Sheldon Toys Inc Manufactures Toy Cannons