Reference no: EM132666379

Comfort chair 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. 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 Comfort. Beginning work in process was 30% completed as to conversion costs, while ending work in process was 80% completed 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

Problem 1: Approximating costs to two decimal places, what is the cost of the goods transferred out during February?

Group of answer choices

Option 1: $476,750

Option 2: $505,000

Option 3: $454,535

Option 4: $417,750

Problem 2: Approximating costs to two decimal places, what is the cost of ending inventory at the end of February?

Group of answer choices

Option 1: $76,345

Option 2: $104,500

Option 3: $50,280

Option 4: $49,706