Not Lazy chair company manufacturers a standard recliner.
by | Mar 18, 2020 | Uncategorized
Not Lazy chair company manufacturers a standard recliner. DuringApril, the firm’s Assembly Department started production of 74,000chairs. During the month, the firm completed 79,000 chairs, andtransferred them to the Finishing Department. The firm ended themonth with 10,000 chairs in ending inventory. There were 15,000chairs in beginning inventory. All direct materials costs are addedat the beginning of the production cycle and conversion costs areadded uniformly throughout the production process. The FIFO methodof process costing is used by Not Lazy. Beginning work in processwas 30% complete as to conversion costs, while ending work inprocess was 80% complete as to conversion costs. Beginninginventory: Direct materials $34,000 Conversion costs $45,000Manufacturing costs added during the accounting period: Directmaterials $178,000 Conversion costs $288,000
6) How many of the units that were started and completed during April? What were the equivalent units for conversion costs during April? What is the cost of the goods transferred out during April?
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