Travel Trails Inc.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.

Question

Quizplus · Accepted Answer

As per the given information, the Work-in-Process Inventory on October 1 was 70% complete for materials and 20% complete for conversion costs. This means that 30% of the materials and 80% of the conversion costs were added during October. 
Also, the ending Work-in-Process Inventory on October 31 was 80% complete for materials and 40% complete for conversion costs. This means that an additional 10% of the materials (80% - 70%) and 20% of the conversion costs (40% - 20%) were added during October. 
Therefore, for the ending inventory, 80% of the materials and 40% of the conversion costs were added during October. 
Hence, the correct choice is C).