Totally Tasty Tortillas is about to begin their third year of operations. They planned on completing their last batch for the current year but due to inclement weather, the factory had to unexpectedly shut down which left the batch incomplete. They have compiled the following production information for the current year:
Tortillas started: 37,000 units
Already in process at the beginning of the year: 1,246 units
Complete at year-end: 35,009 units
Conversion: 73% complete at year end
Totally Tasty uses the Weighted-Average method and adds all of its Direct Materials (DM) at the beginning of the process. How many units will Totally Tasty have in their ending inventory?

Question

Quizplus · Accepted Answer

This question requires determining how which units will be included in the total number of units that remain in ending inventory. In order to calculate this, determine how many units Totally Tasty had over the whole period, and then remove the completed units. To calculate that, take the number of units started plus those already in process and subtract those units completed at year-end: 37,000 + 1,246 - 35,009 = 3,237 units.

Totally Tasty Tortillas Is About to Begin Their Third Year