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Mutt Butter is still an emerging company that manufactures and sells peanut butter treats

for dogs. Mutt Butter includes two ingredients: peanut butter, and added nutrient powder.

The ratio of Peanut Butter to nutrient powder is 2:1. To make Mutt Butter, the ingredients

are mixed in a food processor. Mutt Butter is packaged in 1.5 oz single-serve cups. Julia

is the chef of Mutt Butter and her sole role is to make the Mutt Butter. Mutt Butter is made

in a commercial kitchen that Mutt Butter rents for a contracted 25 days a year. That rent

includes the utilities and use of the food processor and packaging equipment. The

kitchen facility will also store any packaged Mutt Butter and ingredients for free. The

overhead associated with manufacturing is allocated as a function of direct labor hours.

Mutt Butter did its first production run in 2015, and a second in 2016. At the end of the

run in 2016, Julia closed her books and estimated the ending balance of work-in-process

to be as follows:

Item Percent Complete Ending Balance ($)

Peanut Butter 60% $600

Nutrient Powder 45% $281

1.5 Oz Cups (with lids, washed) 100% $100

Direct Labor 20% $350

Overhead (allocated on DL hrs) 20% $400

Mutt Butter in Process 1,000 units $1,731

At the beginning of 2017, Julia went to inspect the Work-In-Process stores, and found an

extra package of peanut butter that she had missed at the end of 2016 and forgotten to

factor into her calculations. Note that finding this peanut butter does not change the

amount of money that she spent on peanut butter in total. It only changes the quantity of

peanut butter that is in the ending balance of work in process.

1. What was the percentage completion of the units Mutt Butter sold in 2016?