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 73% complete for materials and 24% complete for conversion costs.On October 31,its ending Work-in-Process Inventory was 84% complete for materials and 45% 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

The information provided in the question indicates that the company uses the FIFO method of process costing and uses the percentage of completion method to determine the degree of completion of its ending work-in-process inventory for materials and conversion costs.

Therefore, the percentage of materials and conversion costs added during October can be calculated as follows:

Materials:

Ending inventory % complete for materials - Beginning inventory % complete for materials = % of materials added during October
84% - 73% = 11%

Conversion costs:

Ending inventory % complete for conversion costs - Beginning inventory % complete for conversion costs = % of conversion costs added during October
45% - 24% = 21%

Therefore, the correct answer is C, which indicates that 84% of the materials and 45% of the conversion costs were added during October.