Carolwood Company manufactures widgets and uses process costing. The status of their beginning and ending inventory is as follows:

Beginning Inventory 30% of the manufacturing process is complete.

Ending Inventory 55% of the manufacturing process is complete.

Direct materials are added to the manufacturing process in stages. None are added when production begins. Approximately 1/2 of the materials are added when the product is 25% complete. The other half is added when the product is 50% complete.

What percentage complete are Beginning Inventory and Ending Inventory with respect to Direct materials (DM) and Conversion Costs (CC)?

a. Beg. Inventory DM-30% CC-30% End. Inventory DM-55% CC-55%

b. Beg. Inventory DM-50% CC-30% End. Inventory DM-55% CC-55%

c. Beg. Inventory DM-50% CC-70% End. Inventory DM-100% CC-45%

d. Beg. Inventory DM-50% CC-30% End. Inventory DM-100% CC-55%

Answer rating: 100% (QA)

a Beg Inventory DM30 CC30 End I... View the full answer