What is the amount of conversion cost assigned to the units

Assignment Help Accounting Basics
Reference no: EM133150181

Question - 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 materials $24,000

Conversion costs $35,000

Manufacturing costs added during the accounting period:

Direct materials $168,000

Conversion costs $278,000

Required - What is the amount of conversion cost assigned to the units completed and transferred out during February?

Reference no: EM133150181

Questions Cloud

What is the basic ethical issue : Darla does not own any stock in Mortis Company, but Ryan owns 1% of Mortis Company's preferred stock. What is the basic ethical issue
Prepare an income statement using absorption costing : Prepare an income statement using absorption costing based on production of 19,500 tons and sales of 15,600 tons. Can the company report
Compute the labor price variance : During the most recent month, technicians performed 114 tests which required 229 hours of labor at a total cost of $6,362. Compute the labor price variance
Report about the design of an oop system : Report about the design of an OOP system using Data Structures and Algorithms - searching method and why your chosen algorithm for each operation
What is the amount of conversion cost assigned to the units : What is the amount of conversion cost assigned to the units completed and transferred out during February
What are progressive, regressive, and proportional taxes : What are progressive, regressive, and proportional taxes? Why do you think the government believes progressive is a more equitable tax than regressive tax
Identify the balance-related audit objectives : For each of the above internal control procedures, identify the balance-related audit objectives, discuss the likely misstatements
Operate businesses in separate business entity : Does it always make sense to operate businesses in a separate business entity, such as a C corporation? When might it be better to be a sole proprietor?
Discuss the likely impact on fraud risk : For each of the above events, discuss the likely impact on fraud risk and / or possible material misstatements in financial statements

Reviews

Write a Review

Accounting Basics Questions & Answers

  Compute the corporate-level built-in gains tax

Matulis, Inc., a C corporation, owns a single asset with a basis of $427,200. Compute the corporate-level built-in gains tax that must be paid by Matulis

  Trends and items of concern for the directors of fedex

Prepare an interpretative write up of your financial analysis, explaining trends and items of concern for the directors of FedEx. For each ratio, you should define the ratio, inform the directors about the change in the ratio from one year to the ..

  Evaluate what is effect of transaction on individual asset

Evaluate What is the effect of transaction on individual asset accounts, individual liability accounts, and the Owner's Equity account?

  What are role of investments on a corporation balance sheet

What are the role of investments on a corporation balance sheet. What considerations would you have in your business as you consider short-term

  What are the equivalent units for conversion costs

All inventories are costed by the first-in, first-out method. What are the equivalent units for conversion costs under the FIFO method

  Calculate the work-in-process inventory

Green Bay Packaging manufactures corrugated paper boxes. It uses a job order costing system. Calculate the Work-in-process inventory

  Discuss coca-cola company is organized geographically

The Coca-cola Company is organized geographically and defines reportable operating segments as regions of the world

  Discuss what was the cost of goods sold for the magic shop

The cost of goods manufactured was $106,700. What was the cost of goods sold for The Magic Shop Corporation

  Should western styles make or buy their range of denim jeans

Western Styles Ltd currently design and manufacture their own range of denim jeans. Should Western Styles Ltd make or buy their range of denim jeans

  Calculate the amount and nature of income

Assume instead that Z redeemed 6 of B's shares (basis $9,000) for $7,000. Calculate the amount and nature of income recognized by B on the distribution

  Prepare a classified balance sheet for blanchard company

Using the following data, prepare a classified balance sheet for Blanchard Company as of December

  Compute the labor price and quantity variances

Compute the labor Price and Quantity Variances. Compute the labor rpice and quantity variances, assuming the standard is 3.3 hours of firect labor.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd