If all direct materials are added at the end of the production process,and the units have made it 50% of the way through the production process,then the percentage completion for direct materials is 50%.

Question

Quizplus · Accepted Answer

The statement is false. If all direct materials are added at the end of the production process, then how far along the units are in the production process does not affect the percentage completion for direct materials. The percentage completion for direct materials would still be 0% until they are added at the end of the production process.

If All Direct Materials Are Added at the End of the Production