Carolwood Company manufactures widgets and uses process costing. The status of the beginning and ending inventory is: 
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-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%
Correct Answer:
Verified
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