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Travel Trails Manufactures Railway Coaches and Uses the FIFO Method

Question 123

Multiple Choice

Travel Trails manufactures railway coaches and uses the FIFO method of process costing to record costs. The Work-in-Process Inventory of the Heating Department on October 1 was 70% complete for materials and 20% complete for conversion costs. On October 31, its ending Work-in-Process Inventory was 80% complete for materials and 40% complete for conversion costs. This means that for the ending inventory ________ % of the materials and ________ % of the conversion costs were added during October.


A) 70; 40
B) 30; 20
C) 80; 40
D) 40; 80

Correct Answer:

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