CARDENES CORP. Okay... here are some simple facts: The company makes paper clips. Every clip is...

 

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CARDENES CORP. Okay... here are some simple facts: The company makes paper clips. Every clip is exactly the same. At the beginning there was no WIP and at the end there was no WIP. You made 10 million clips. 1. How many units worth of paper clips did you really do? 2. It cost $1 million to do this, what was the unit cost per clip? Ok... now let's pretend that you started the 10 million. You didn't finish any. They were all 75% finished. 3. How many WHOLE units worth of paper clips did you really do?(equivalent units) 4. It cost $1 million to do this, what was the unit cost per clip? Now assume that you finished half of the clips. The remaining clips were 50% complete. 5. How many units worth of paper clips did you really do? (equivalent units) 6. It cost $1 million to do this, what was the unit cost per clip? CARDENES CORP. Okay... here are some simple facts: The company makes paper clips. Every clip is exactly the same. At the beginning there was no WIP and at the end there was no WIP. You made 10 million clips. 1. How many units worth of paper clips did you really do? 2. It cost $1 million to do this, what was the unit cost per clip? Ok... now let's pretend that you started the 10 million. You didn't finish any. They were all 75% finished. 3. How many WHOLE units worth of paper clips did you really do?(equivalent units) 4. It cost $1 million to do this, what was the unit cost per clip? Now assume that you finished half of the clips. The remaining clips were 50% complete. 5. How many units worth of paper clips did you really do? (equivalent units) 6. It cost $1 million to do this, what was the unit cost per clip?

Answer rating: 100% (QA)

Scenario 1 No Work in Progress WIP at Start and End 1 How many units worth of paper clips did you re... View the full answer