Kido Construction builds and sells cheap cardboard homes. The entire home is built out of

a large, single piece of cardboard with only indirect materials such as tape and nails used

in construction. The price of the raw material (cardboard) used in the homes has remained

perfectly stable and Kido Construction incurs no spoilage. Each home sells for $25,000.

The following data is from the year ending December, 31, 2010. Because Kido Construction’s

CEO has never taken an accounting class, he has asked you to take the following information

and organize it into a useful format. [Assume that beginning WIP inventory has the same perunit

value as ending WIP inventory.]

Item Amount

Beginning raw material (1000 cardboard) $500,000

Ending raw material (500 cardboard) $250,000

Raw materials transferred into production (800 cardboard) $400,000

Ending work-in-process (500 homes) $500,000

Work-in-process transferred into finished goods (400 homes) ?

Beginning finished goods (600 homes) $300,000

Homes sold (700)

Direct Labor $600,000

Factory Overhead (total) $300,000

Selling, general, and administrative costs (total) $750,000


1c) What was the amount (in units) of beginning WIP inventory?