Answer the following questions using the information below:
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.
Beginning inventory:
$\begin{array} { l l } \text { Direct materials } & \$ 24,000 \ \text { Conversion costs } & \$ 35,000 \end{array}$
Manufacturing costs added auring the œcounting period:
Direct materials $\quad \$ 168,000$
Conversion costs $\quad \$ 278,000$
-What were the equivalent units for conversion costs during February?
A) 81,500
B) 83,000
C) 73,000
D) 77,500

Question

Answer the following questions using the information below:
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.
 Beginning inventory:
$\begin{array} { l l } \text { Direct materials } & \$ 24,000 \ \text { Conversion costs } & \$ 35,000 \end{array}$
Manufacturing costs added auring the œcounting period:
Direct materials $\quad \$ 168,000$
Conversion costs $\quad \$ 278,000$
-What were the equivalent units for conversion costs during February?
A) 81,500
B) 83,000
C) 73,000
D) 77,500

Quizplus · Accepted Answer

Equivalent units of production for conversion costs = Units completed and transferred out + (Ending work in process x % complete)= 78,000 + (10,000 x 80%)= 78,000 + 8,000= 86,000 unitsHowever, since the beginning work in process was 30% complete, we need to deduct the equivalent units for the beginning work in process:= 86,000 - (15,000 x 30%)= 86,000 - 4,500= 81,500 unitsTherefore, the equivalent units for conversion costs during February were 81,500 units.

Answer the Following Questions Using the Information Below: Comfort Chair Direct materials $24,000 Conversion costs $35,000\begin{array} { l l } \text { Direct materials } & \$ 24,000 \\ \text { Conversion costs } & \$ 35,000 \end{array} Direct materials Conversion costs ​$24,000$35,000​

Answer the Following Questions Using the Information Below:
Comfort Chair $\begin{array} { l l } \text { Direct materials } & \$ 24,000 \\ \text { Conversion costs } & \$ 35,000 \end{array}$