Question

-80/quizzes/72372?module_item_id=548500 Roomz 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 Roomz. 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: Direct materials Conversion costs $24,000 $35,000 Manufacturing costs added during the accounting period: Direct materials $168,000 Conversion costs $278.000 What is the cost of the goods transferred out during February? 5454.694.80 RI DE 4

Answer 1

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Roomz Company
Started and completed in February
Goods finished in February	78,000.00
Less: Opening work in process	15,000.00
Started and completed in February	63,000.00

Cost of Production Report
For February 28	Whole Units	Equivalent Units
Units charged to production		Materials	Conversion
Inventory in Process February 1	15,000.00
Add: Started during the month	73,000.00
Total units to be accounted for	88,000.00
Units to be assigned costs:
Inventory in Process February 1	15,000.00	-	10,500.00
Started and completed in February	63,000.00	63,000.00	63,000.00
Goods finished	78,000.00	63,000.00	73,500.00
Inventory in Process February 28	10,000.00	10,000.00	8,000.00
Total units to be assigned costs:	88,000.00	73,000.00	81,500.00
Costs per equivalent unit		Materials	Conversion	Total
Total costs for the February		168,000.00	278,000.00	446,000.00
Total equivalent units		73,000.00	81,500.00
Costs per equivalent unit		2.30	3.41
Costs charged to production
Inventory in Process February 1		24,000.00	35,000.00	59,000.00
Costs incurred in February				446,000.00
Total costs accounted for				505,000.00
Costs allocated to completed and partially completed units
Inventory in Process February 1		24,000.00	35,000.00	59,000.00
To complete Inventory in Process February 1		-	35,816.00	35,816.00
Started and completed in February		144,986.00	214,896.00	359,882.00
Transferred to Finished goods in February				454,698.00