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Carolwood Company Manufactures Widgets and Uses Process Costing

Question 140

Multiple Choice

Carolwood Company manufactures widgets and uses process costing. The status of their beginning and ending inventory is as follows: Carolwood Company manufactures widgets and uses process costing. The status of their beginning and ending inventory is as follows:   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% 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%

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