You are the manager of the packaging department in a cookie factory. (Obviously, the packaging employees cannot eat the cookies that are transferred in during the period.) After your employees insert cookies into colorful packages (step 1) for display on store shelves, the packages of cookies are then boxed using cardboard cartons (step 2) for shipment to stores. Each unit of product is represented by a carton of packaged cookies. The packaging department began the period with 1,000 units of cookies. During the period, 5,000 units of cookies were transferred in from the baking department and 5,500 units of cookies were transferred out to the finished goods department. The number of units of cookies in the ending inventory of the packaging department equals:

Cookies are transferred to the colorful packaging to be displayed on the shelves of the stores. These packaged cookies are transferred in the carton to be delivered at the stores.

Now the data given in this question is as follows:

Staring Units of cookies in the packaging department = 1000 units

New units of cookies transferred in from the baking department to the packaging department = 5000 units.

Now total units that packaging department have = 1000 + 5000 = 6000 units of cookies.

Total unit of cookies transferred out to the finished goods department = 5500 units of cookies.

So the number of units of cookies in the ending inventory of the packing department will be the total units in the packaging department less the total units transferred out to the finished goods department, i-e

6000 - 5500 = 500 units of cookies remaining in the packaging department.