Answer the Following Questions Using the Information Below

question 123

Multiple Choice

Answer the following questions using the information below:
The Lumbar Chair Company manufacturers a standard recliner. During February, the firm's Assembly Department started production of 150,000 chairs. During the month, the firm completed 170,000 chairs and transferred them to the Finishing Department. The firm ended the month with 20,000 chairs in ending inventory. All direct materials costs are added at the beginning of the production cycle. Weighted-average costing is used by Lumbar.
-How many chairs were in inventory at the beginning of the month? Conversion costs are incurred uniformly over the production cycle.

• A)10,000 chairs
• B)20,000 chairs
• C)30,000 chairs
• D)40,000 chairs

---

Definitions:

Fraudulent Misrepresentation

Any misrepresentation, either by misstatement or omission of a material fact, knowingly made with the intention of deceiving another and on which a reasonable person would and does rely to his or her detriment.

Undue Influence

Undue Influence is a legal term referring to a situation in which an individual is able to persuade another’s decisions due to the relationship between the two parties.

Mistake Of Value

A misunderstanding about the importance or worth of something, often considered in legal contexts regarding contracts.

Ray

In physics, a ray is a straight line that originates from a point and extends infinitely in one direction, often used to model the path of light or other radiation.