Department started production of 75,000 chairs.  During the month, the firm completed 80,000 chairs and transferred them to the Finishing Department.  The firm ended the month with 10,000 chairs in ending inventory which is 80% completed.  There were 15,000 chairs in the beginning inventory which is 30% completed.  All direct materials costs are added at the beginning of the production cycle, and conversion costs are added uniformly throughout the process.  The FIFO method is used.                                           Direct Materials       Conversion Costs Beginning inventory               84,000                   122,500 Costs added                          588,000                       970,270               The cost of the units completed

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter3: Process Cost Systems
Section: Chapter Questions
Problem 5E: The Converting Department of Worley Company had 2,400 units in work in process at the beginning of...
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Honesty Manufacturing Company manufactures a standard recliner.  In December, the firm’s Assembly Department started production of 75,000 chairs.  During the month, the firm completed 80,000 chairs and transferred them to the Finishing Department.  The firm ended the month with 10,000 chairs in ending inventory which is 80% completed.  There were 15,000 chairs in the beginning inventory which is 30% completed.  All direct materials costs are added at the beginning of the production cycle, and conversion costs are added uniformly throughout the process.  The FIFO method is used.

                                          Direct Materials       Conversion Costs
Beginning inventory               84,000                   122,500
Costs added                          588,000                       970,270
             
The cost of the units completed during December is

A. 1,556,800
B. 1,593,410
C. 1,471,400
D. 1,264,900

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