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? Units in ending WIP inventory

Answer 1

Skysong Company has 1,430 units in the process (WIP) inventory at the end of the period. The units in ending WIP inventory are calculated by deducting the number of completed candles from the total units started and in process, including those at the beginning of the period.

Step-by-step explanation:

The question pertains to the calculation of units in the ending work-in-process (WIP) inventory for Skysong Company using the weighted-average method of process costing. Skysong Company started 5,260 candles and had 720 candles in process at the beginning. By the end of the period, 4,550 candles were complete. The ending WIP inventory was three-quarters complete concerning conversion costs.

To calculate the number of units in the ending WIP inventory, we need to determine the total units accounted for, which equals the number of units completed plus the units in the ending WIP. The total units accounted for are 4,550 completed candles. To find the units in the ending WIP inventory, we subtract the units completed from the total units started and in-process at the beginning of the period: 5,260 (started) + 720 (beginning WIP) - 4,550 (completed) = 1,430 units. Therefore, Skysong Company has 1,430 units in ending WIP inventory.