Answer the Following Questions Using the Information Below

question 28

Multiple Choice

Answer the following questions using the information below:
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:
Manufacturing costs added during the accounting period:

-How many of the Rest-a-Lot company units that were started during February were completed during February?

• A)85,000
• B)80,000
• C)75,000
• D)65,000
• E)70,000

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Definitions:

Value Of A Right

In finance, the value associated with a right, such as a stock right, which is the value to buy additional shares at a discounted price.

Market Price

The current valuation at which an asset or service is available for sale or purchase in the marketplace.

New Equity Issue

The process of issuing new shares of stock to raise capital for a company.

Liquidity

The ease with which an asset can be converted into cash without significantly affecting its market price.