Data for the Rest-a-Lot chair company manufacturers a standard recliner. During February, the firm's Assembly...
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Data for the Rest-a-Lot 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 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 is used by Rest-a-Lot. 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 Material 24,000
Conversion cost 35,000
Manufacturing cost added during the accounting period
Direct material $168,000
Conversion cost $278,000
What is the cost of the goods completed and transferred out during February?
$417,750
$456,015
$476,750
$505,000
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