Multiple Choice Questions:

1. On September 30, the Mixing Department of Tea Works had Work-in-Process Inventory that was 25% complete for materials and 20% complete for conversion costs. This means that for the ending inventory, ________ % of materials and ________ % of the conversion costs were added during September.

A) 80; 75

B) 75; 80

C) 20; 25

D) 25; 20

2. 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

3. The first-in, first-out (FIFO) method creates better month-to-month cost comparisons than the weighted-average method:

A) As it does not recognize transferred in units from other processes.

B) When there are substantial quantities of units in process at the end of the period.

C) Because it merges costs from the prior period with the current period.

D) As it is used by industries that do not experience significant cost changes.

Answer rating: 100% (QA)

1 D 25 20 2 C 80 40 3 ... View the full answer