Answer the following questions using the information below:
The Swivel Chair Company manufacturers a standard recliner. During February, the firm's Assembly Department started production of 145,000 chairs. During the month, the firm completed 175,000 chairs and transferred them to the Finishing Department. The firm ended the month with 18,000 chairs in ending inventory. All direct materials costs are added at the beginning of the production cycle. Weighted-average costing is used by Swivel.
-Of the 145,000 units Swivel started during February,how many were finished during the month?
A) 177,000
B) 197,000
C) 127,000
D) 217,000

Question

Quizplus · Accepted Answer

The number of units finished during the month is calculated by adding the units started and completed (145,000) to the beginning inventory and subtracting the ending inventory. Since 175,000 chairs were completed and transferred, and 18,000 chairs were in ending inventory, the units finished during the month are 145,000 (started) + 30,000 (beginning inventory) - 18,000 (ending inventory) = 157,000. However, since the question asks for the units started and finished, it is 145,000 - 18,000 = 127,000.

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