Answer the Following Questions Using the Information Below

question 11

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 is the cost of the goods transferred out during February?

• A)$417,750
• B)$456,015
• C)$476,750
• D)$505,000

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Definitions:

Two-Tiered System

A system or structure that has two distinct levels of operation, authority, or importance.

Class Action Arbitration

A form of arbitration that allows a group of individuals with similar legal claims to arbitrate their disputes collectively rather than individually.

Federal Arbitration Act

U.S. federal law that provides the legal foundation for the enforcement of arbitration agreements and governs the conduct of arbitration proceedings.

Summary Jury Trial

A shortened trial that serves as an alternative dispute resolution method, involving a jury which listens to a summary of the case and renders an advisory verdict.