Comfort chair company makes a standard recliner. During February, the firm's Assembly Department began the production of
Question:
Comfort chair company makes a standard recliner. During February, the firm's Assembly Department began the production of 73,200 chairs. During the month, the firm completed 78,200 chairs and transferred them to the Finishing Department. The company ended the month with 10,600 chairs in ending inventory. There were 15,600 chairs in the beginning inventory. All direct material costs are added at the beginning of the production cycle, and conversion costs are added evenly throughout the production process. Comfort uses the FIFO process costing method. The initial work in process was 25% complete in terms of conversion costs, while the final work in process was 75% complete in terms of conversion costs.
Initial inventory:
Direct materials $24,100
The conversion cost $35,700
Aggregate manufacturing costs during the accounting period:
Direct materials $169,000
The conversion cost $278,400
What is the cost of goods transferred during February?
(Round intermediate calculations to the nearest cent.)
Operations Management in the Supply Chain Decisions and Cases
ISBN: 978-0073525242
6th edition
Authors: Roger Schroeder, M. Johnny Rungtusanatham, Susan Goldstein