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:

Market Yield

The annual income return as a percentage of the market price of an investment.

Zero-Coupon Bond

A type of bond that does not pay interest during its life but is sold at a deep discount, providing profit at maturity when it is redeemed for its face value.

Matures

The point at which a financial instrument, such as a bond or loan, reaches its due date and the principal is to be paid back.

Yield-To-Maturity

The total return anticipated on a bond if the bond is held until its maturity date, considering all interest payments and the principal repayment.