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24 September, 20:16

The Assembly Department started the month with 78,000 units in its beginning Work in Process Inventory. An additional 254,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 21,000 units in the ending Work in Process Inventory of the Assembly Department.

How many units were transferred to the next processing department during the month?

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  1. 24 September, 20:51
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    Outflow from assembly = 311,000 units

    Explanation:

    The assembly department in this scenario handles the work in process part of production.

    Production involves different stages that includes: Raw material, work in process, finished goods.

    Products flow through these different stages.

    To calculate the amount transferred out we need to first calculate total WIP within the month

    Total WIP = Inflow of product + Beginning inventory

    Total WIP = 254,000 + 78,000

    Total WIP = 332,000

    Outflow from assembly = Total WIP - Ending WIP

    Outflow from assembly = 332,000 - 21,000

    Outflow from assembly = 311,000 units
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