Carolwood Company manufactures widgets and uses process costing. The status of the beginning and ending inventory is: 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 are added when the product is 50% complete. The percentages complete of beginning inventory and ending inventory with respect to direct materials (DM) and conversion costs (CC), respectively, area. 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-50% CC-70% End. Inventory DM-100% CC-45%

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

Question

Business

Sean Conner

4 October, 05:09

Carolwood Company manufactures widgets and uses process costing. The status of the beginning and ending inventory is: 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 are added when the product is 50% complete. The percentages complete of beginning inventory and ending inventory with respect to direct materials (DM) and conversion costs (CC), respectively, area. 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-50% CC-70% End. Inventory DM-100% CC-45%

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

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Answers (1)

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Ayden Vance · Answer 1

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

Explanation:

The percentage is shown below:

For beginning inventory

Direct material = 100 : 2 = 100

And, the conversion cost is

= 100% - 30% = 70%

And, for ending inventory

Direct material = 100%

Conversion cost = 100 - 55% = 45%

Hence, the correct option is c

And, the calculation is shown above

All other information is not relevant. Hence, ignored it