Comfort chair company manufacturers a standard recliner. During February, the firm's Assembly Department started production of 73, 000 chairs. During the month, the firm completed 78,000 chairs, and transferred them to the Finishing Department. The firm ended the month with 10,000 chairs in ending inventory. There were 15,000 chairs in beginning inventory. All direct materials costs are added at the beginning of the production cycle and conversion costs are added uniformly throughout the production process. The FIFO method of process costing is used by Comfort. Beginning work in process was 30% complete as to conversion costs, while ending work in process was 80% complete as to conversion costs. Fin Beginning inventory: Direct materials $24,000 Conversion costs $35, 000 Manufacturing costs added during the accounting period: Direct materials $168, 000 Conversion costs $278,000 What were the equivalent units for conversion costs during February? a. 81, 500 b. 73, 000 c. 77, 500 d. 83,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
Do not give solution in image
Comfort chair company manufacturers a standard recliner. During February, the firm's Assembly
Department started production of 73, 000 chairs. During the month, the firm completed 78,000
chairs, and transferred them to the Finishing Department. The firm ended the month with 10,000
chairs in ending inventory. There were 15,000 chairs in beginning inventory. All direct materials costs
are added at the beginning of the production cycle and conversion costs are added uniformly
throughout the production process.
The FIFO method of process costing is used by Comfort. Beginning work in process was 30%
complete as to conversion costs, while ending work in process was 80% complete as to conversion
costs. Fin Beginning inventory: Direct materials $24,000 Conversion costs $35, 000 Manufacturing
costs added during the accounting period: Direct materials $168, 000 Conversion costs $278,000
What were the equivalent units for conversion costs during February?
a. 81, 500
b. 73, 000
c. 77, 500
d. 83,000
Transcribed Image Text:Comfort chair company manufacturers a standard recliner. During February, the firm's Assembly Department started production of 73, 000 chairs. During the month, the firm completed 78,000 chairs, and transferred them to the Finishing Department. The firm ended the month with 10,000 chairs in ending inventory. There were 15,000 chairs in beginning inventory. All direct materials costs are added at the beginning of the production cycle and conversion costs are added uniformly throughout the production process. The FIFO method of process costing is used by Comfort. Beginning work in process was 30% complete as to conversion costs, while ending work in process was 80% complete as to conversion costs. Fin Beginning inventory: Direct materials $24,000 Conversion costs $35, 000 Manufacturing costs added during the accounting period: Direct materials $168, 000 Conversion costs $278,000 What were the equivalent units for conversion costs during February? a. 81, 500 b. 73, 000 c. 77, 500 d. 83,000
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps

Blurred answer
Knowledge Booster
Cost Sheet
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education