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Charlie Chairs Inc., manufactures plastic moldings for car seats. Its costing system utilizes two cost categories, direct materials and conversion costs. Each product must pass through Department A and Department B. Direct materials are added at the beginning of production. Conversion costs are allocated evenly throughout production. Data for Department A for February 2017 are: Work in process, beginning inventory, 35% 520 units converted Units started during February 980 units Work in process, ending inventory 140 units Costs for Department A for February 2017 are: Work in process, beginning inventory Direct materials $182,000 Conversion costs $207,000 Direct materials costs added during February $603,000 Conversion costs added during February $425,000 How many units were completed and transferred out of Department A during February? O A. 660 units OB. 980 units O C. 1,500 units OD. 1,360 units Trusted Products Company makes a household appliance with model number L800. The goal for 2018 is to reduce direct materials usage per unit. No defective units are currently produced. Manufacturing conversion costs depend on production capacity defined in terms of L800 units that can be produced. The industry market size for appliances increased 15% from 2017 to 2018. The following additional data are available for 2017 and 2018: Units of L800 produced and sold Selling price Direct materials (square feet) Direct materials costs per square foot Manufacturing capacity for L800 (units) Total conversion costs Conversion costs per unit of capacity 2017 30,000 $400 91,000 $31 37.500 $450,000 $20 2018 34.500 $380 89,000 $32 36,000 $432,000 $20 What is the revenue effect of the growth component? ..... O A. $423,150 F B. $1,800,000 U OC. $423,150 U OD. $1,800,000 F

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