Cost Management: A Strategic Emphasis 5th Edition by David Stout, Edward Blocher, Gary Cokins

Exercise 19

Work-in-process inventory, February 1	80,000 units
Work-in-process inventory, February 28	?
Units started during February	60,000
Units completed during February	75,000

Step 1 of 3

Work in progress:

Work in progress in a manufacturing concern refers to the partially finished goods on which work will be completed in the next production period.

Production process is a continuous process and organization require to calculation cost at the end of period to estimate the cost of the product. Because of the continuous production it is necessary that few units are partially completed and will be completed in the next year. These units are known as Work in progress.