Happy Trails,Inc

question 137

Multiple Choice

Happy 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 74% complete for materials and 23% complete for conversion costs.On October 31,its ending Work-in-Process Inventory was 84% complete for materials and 41% complete for conversion costs.This means that for the ending inventory,________% of the materials and ________% of the conversion costs were added during October.

• A) 74; 41
• B) 26; 23
• C) 84; 41
• D) 41; 84

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Definitions:

Seasonal Nature

Describes fluctuations in business activity, revenue, or profits at certain times of the year due to seasonal factors such as holidays or weather changes.

Fiscal Year Ends

The completion of a one-year, or 12-month, accounting period after which a company determines its financial performance.

Net Income

Total earnings of a business, arrived at by subtracting all expenses and taxes from its overall income.

Dividends

Payments made to shareholders out of a corporation's profits, reflecting the company's earnings and financial health.