Answer the Following Questions Using the Information Below

question 108

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:

-What were the equivalent units for conversion costs during February?

• A)83,500
• B)85,000
• C)75,000
• D)79,500

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Definitions:

Societal Needs

The basic requirements essential for communities and societies to function, such as food, shelter, health care, and education.

Sustainability

The capacity to maintain or sustain a process or situation over time, often relating to environmental, social, and economic factors.

Natural Resources

Naturally occurring materials or substances that can be exploited for economic gain, such as minerals, forests, water, and fertile land.

Future Generations

The people who will live in the future, for whom current generations may hold ethical responsibilities.