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Question
Carolwood Company manufactures widgets and uses process costing. The status of the 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 half 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—50%, CC—30%
End. inventory: DM—100%, CC—55%
b. Beg. inventory: DM—50%, CC—30%
End. inventory: DM—55%, CC—55%
c. Beg. inventory: DM—30%, CC—30%
End. inventory: DM—55%, CC—55%
d. Beg. inventory: DM—50%, CC—70%
End. inventory: DM—100%, CC—45%
Answer
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