Question

Comfort chair company manufacturers a standard recliner.

Answer 1

Answer:

$455,540.00

Explanation:

Equivalent units:                                             Material       Conversion

Total cost added during the year                  169,000          278,400

Equivalent Units                                               73,200            82,250

Cost per Equivalent unit                                       2.31                 3.38

Units Completed from Beginning WIP (15600 units):

                                        Equivalent unit     Cost per EU    Total Cost

Beginning Cost                                                                     59,800

Material                                                 0                  2.31                    0

Conversion Cost                          11,700                  3.38         39,546

Cost of units completed from Beg WIP                                   99,346

Units started and Transferred out (62600 units):

                                        Equivalent unit     Cost per EU    Total Cost

Material                                       62,600                   2.31        144,606

Conversion Cost                        62,600                   3.38        211,588

Total Cost of Units completed and transferred out:              356,194

Total cost of Goods completed = 99,346 + 356,194 = 455,540

Hope this helps!