Question

QUESTION 1 Carolwood Company manufactures widgets and uses process costing. The status of their beginning and ending inventory is as follows: Beginning Inventory 30% of the manufacturing process is complete. Ending Inventory 155% of the manufacturing process is complete. 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)? Beg.Inventory DM-50% CC-30% End.Inventory DM-100% CC-55% Beg.Inventory DM-50% CC-30% End.Inventory DM-55% CC-55% Beg.Inventory DM-30% CC-30% End.Inventory DM-55% CC-55% Beg.Inventory DM-50% CC-70% End.Inventory DM-100% CC-45%

Answer 1

Question No .01

Option A:

Beg. Inventory DM 50%, CC-30%

End. Inventory DM 100%, CC-55%

In the Beginning Inventory, 30% of the Manufacturing Process is completed which means more than 25% of Manufacturing is done, hence DM - is 50% and CC is 30%

In the Ending Inventory, 55% of the Manufacturing Process is completed which means more than 55% of Manufacturing is done, hence DM - is 100% and CC is 55%

Question No. 04:

Option - B

Work in Progress - Department -B 50,000

Material 50,000

When a material is added to the work in progress the Journal Entry is as Follows

Work in Progress 50,000

Material    50,000

Question No.05:

Option - B

Just-in-time processing is a business philosophy that focuses on reducing time & cost & eliminating poor quality. This is accomplished in manufacturing & non-manufacturing processes by combining processing functions into work centers & cross-training workers to perform more than one function