Answer the Following Questions Using the Information Below

question 64

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 Rest-a-Lot company cost of the goods transferred out during February?

• A)$417,750
• B)$421,050
• C)$476,750
• D)$505,000
• E)$456,015

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Definitions:

Business Combination

A transaction or event in which an acquirer obtains control of one or more businesses, often involving mergers, acquisitions, or consolidations.

Pooling-of-interests Method

A merger accounting method in which the assets and liabilities of merging companies are combined using book values, rather than the purchase method.

Statutory Amalgamation

A merger or combination of two or more companies into a new entity, governed and approved by a legal statute.

Reverse Takeover

A scenario where a smaller or a privately-held company takes over a larger or publicly-traded company, often to bypass the lengthy and complex process of going public.