Question

Skysong Company had planned to complete its latest batch of pillar candles before year-end, but it simply ran out of time. During the period, 5,260 new candles were started in addition to the 720 that were already in process. At year-end, 4,550 candles were complete. Skysong adds all of its DM at the beginning of the process and uses the weighted-average method of process costing. Ending WIP Inventory this period was three-quarters complete for conversion costs. How many units does Skysong have in ending inventory this period?

Answer 1

Skysong Company has 1,430 candles in ending inventory for the period, after starting a total of 5,980 candles and completing 4,550 of them by year-end.

Step-by-step explanation:

To calculate the number of units Skysong has in ending inventory this period, we will first identify the total number of candles worked on and then subtract the number of completed candles.

Skysong started with 720 candles already in process and added 5,260 new candles, making a total of 5,980 candles (720 + 5,260). At year-end, 4,550 candles were complete. So, the equation to find out the ending inventory would be:

Total number of candles worked on - Number of completed candles = Ending inventory

5,980 - 4,550 = 1,430

Therefore, Skysong Company has 1,430 candles in ending inventory for the period in question, with the necessary adjustments made for conversion costs since they were three-quarters complete.