The Rest-A-Lot chair company manufactures a standard recliner. During February, the firm's Assembly Department started production...

The Rest-A-Lot chair company manufactures a standard recliner. During February, the firm's Assembly Department started production of 75,000 chairs. During the month, the firm completed 80,000 chairs. The firm ended the monh with 10,000 chairs in ending inventory. There were 15,000 chairs in beginning inventory. All directy material costs are added at the beg. of the production cycle and conversion costs are added uniformly throughout the production process. The FIFO method of process costing is used by Rest-a-Lot. Beginning work in process was 30% complete as to conversion costs, while ending work in process wa 80% complete to conversion costs. Beginning inventory costs: Direct materials $24,000 Conversion Costs $35,000 Manufacturing costs added during the accoutng period: Direct materials: $168,000 Conversion Costs: $278,000

What is the cost of the goods transferred out during February?

Solutions

Expert Solution

Answer : 455365

Calculation :

Beginning WIP of 15000 units (100% Complete as to material & 30% Complete as to conversion cost) :

Out of 75000 units introduced during the month, 65000 units are 100% complete as to material & conversion cost

Closing WIP of 10000 units (100% complete as to material & 80% complete as to conversion Cost.

So,

Equivalent Unit as to material = 75000 (65000*100%+10000*100%)

Equivalent Unit as to Conversion Cost = 83500 (15000*70%+65000*100%+10000*80%)

Material cost to be allocated to transferred unit = Beginning WIP Cost + During the month allocated cost

= 24000 + (168000/75000*65000)

= 169600

Coversion cost to be allocated to transferred unit = Beginning WIP Cost + During the month allocated cost

= 35000 + (278000/83500*75500)

= 286365

Total Cost = 169600 + 286365

= 455365

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

A Rest a lot chair company manufactures a standard recliner. During february, the firm's assembly department...

A Rest a lot chair company manufactures a standard recliner. During february, the firm's assembly department started a standard production of 75,000 chairs. During the month the firms completed 80,000 chairs and transfered 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 cost are added at the beginning of the production process. The FIFO method of process costing is used by Rest a...

the rest-a-lot chair company manufacturing a standard recliner. during februare the firm's assembly department started production...

the rest-a-lot chair company manufacturing a standard recliner. during februare the firm's assembly department started production of 75,000 chairs. during the month, the firm completed 85,000 chairs and transferred them to the finishing department. the firm ended the month with 15,000 chairs in ending inventory. all direct materials costs are added at the begining of the production cycle. weighted-average costing is uesd by rest-a-lot. what were the equivalent units for materialsfor february? A 95?000 chairs B 75?000 chairs C 80?000...

XYZ chair company manufactures a standard recliner. During February, the firm's Assembly Department started production of...

XYZ chair company manufactures a standard recliner. During February, 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. 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...

Comfort chair company manufacturers a standard recliner. During February, the firm's Assembly Department started production of...

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...

Comfort chair company manufacturers a standard recliner. During February, the firm's Assembly Department started production of...

Comfort chair company manufacturers a standard recliner. During February, the firm's Assembly Department started production of 72,000 chairs. During the month, the firm completed 77,000 chairs, and transferred them to the Finishing Department. The firm ended the month with 11,000 chairs in ending inventory. There were 16,000 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...

Sleepy chairs company manufacturers a standard recliner. During October, the firm's Assembly Department started production of...

Sleepy chairs company manufacturers a standard recliner. During October, the firm's Assembly Department started production of 85,000 chairs. During the month, the firm completed 95,000 chairs, and transferred them to the Finishing Department. The firm ended the month with 10,000 chairs in ending inventory. There were 20,000 chairs in beginning inventory. The number of chairs started and completed in October is 75,000 chairs. True False

Comfort chair company manufactures a standard recliner and uses the FIFO method. In the Assembly Department...

Comfort chair company manufactures a standard recliner and uses the FIFO method. In the Assembly Department (the first department in the production process), the company has two cost categories: direct materials and conversion costs. Direct materials are added at the beginning of the assembly process. Conversion costs are allocated evenly throughout the assembly process. Swivel Chair’s Assembly Department started the month of February with 25,000 units in process that were 50% converted. During the month, 80,000 units were started in...

. The Tochigi Company manufacturers a standard bookshelf. During February, the firm's Assembly Department has the...

. The Tochigi Company manufacturers a standard bookshelf. During February, the firm's Assembly Department has the beginning inventory of 60,000 bookshelves. During the month, the firm completed 120,000 bookshelves, and transferred them to the Finishing Department. The firm ended the month with 30,000 bookshelves in the ending inventory. All direct materials costs are added at the beginning of the production cycle. Conversion costs are added uniformly throughout the production process. The beginning work in process was 60% completed with respect to...

THE FOLLOWING INFORMATION APPLIES TO QUESTIONS BELOW: The Tokiwa chair company manufacturers a standard recliner. During...

THE FOLLOWING INFORMATION APPLIES TO QUESTIONS BELOW: The Tokiwa chair company manufacturers a standard recliner. During February, the firm's Assembly Department started production of 75,000 chairs. During the month, the firm completed 82,000 chairs, and transferred them to the Finishing Department. The firm ended the month with 3,000 chairs in ending inventory at the Assembly Department. All direct materials costs are added at the beginning of the production cycle and conversion costs are added uniformly throughout the production process. The...

The Couch Company produces a standard couch. During March, the firm's Stuffing Area started production of...

The Couch Company produces a standard couch. During March, the firm's Stuffing Area started production of 73,900 couches. During March, they finished 78,400 couches, and transferred them to the Upholstery Area. 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 Couch. Physical Units Dir Mtls Conversion Costs Beg WIP (a) 15,700 $24,400 $35,900 Started during March 73,900...

Subjects