WORK$-$IN$-$PROCESS TURNS EXERCISE$$PROBLEM $1$Your manager has been reviewing a recent production report and has decided to have a talk with you about an increase in the amount of WIP that seems to be populating your work area. Even though you explain that overall volumes have increased recently and that an increase in WIP is expected, your manager insists that the increase in WIP will adversely affect working capital and cash flow. You are not convinced the issue is as severe as your manager seems to believe. To support your point you have collected some data to back up your case that$$the increase in WIP is not an issue. Using the following steps and Table $16\mathrm{.}1,$ cal$-$culate and interpret a WIP turns measure:$1.$ Determine the output for a specific period $2.$ Annualize that period$$s output to simulate a full year$$s worth of output $3.$ Divide the year$$s output by the period$$s average WIP level to determine the WIP turns. Average WIP inventory $=($Beginning WIP $+$ Ending WIP$)/2$