Answer the Following Questions Using the Information Below:
Comfort Chair $\begin{array} { l l } \text { Direct materials } & \$ 24,000 \\ \text { Conversion costs } & \$ 35,000 \end{array}$

question 121

Multiple Choice

Answer the following questions using the information below:
Comfort chair company manufacturers a standard recliner. During February, the firm's Assembly Department started production of 73,000 chairs. During the month, the firm completed 78,000 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 Comfort. 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:
$\begin{array} { l l } \text { Direct materials } & \$ 24,000 \\ \text { Conversion costs } & \$ 35,000 \end{array}$
Manufacturing costs added auring the œcounting period:
Direct materials $\quad \$ 168,000$
Conversion costs $\quad \$ 278,000$
-How many of the units that were started and completed during February?

• A) 83,000
• B) 78,000
• C) 73,000
• D) 63,000

---

Definitions:

Piecework Plans

A compensation system where employees are paid based on the quantity of work completed, rather than on the number of hours worked.

Incentive Pay

Financial or non-financial rewards given to employees based on their performance, as a way to motivate higher productivity and achieve company goals.

Well-Designed Plan

Refers to a strategy or program that has been carefully created with attention to detail, ensuring effectiveness and efficiency.

Incentive Pay

Compensation awarded to employees for achieving specific performance goals, designed to motivate and reward high levels of productivity or exceptional work.