Comfort chair company manufacturers a standard recliner.

during february, the firm's assembly department started production of 73,200 chairs.

during the month, the firm completed 78,200 chairs, and transferred them to the finishing department.

the firm ended the month with 10,600 chairs in ending inventory. there were 15,600 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 25% complete as to conversion costs, while ending work in process was 75% complete as to conversion costs.

beginning inventory:

direct materials $24,100

conversion costs $35,700

manufacturing costs added during the accounting period:

direct materials $169,000

conversion costs $278,400

what is the cost of the goods transferred out during february?
(round intermediary calculations to the nearest cent.)

$455,540.00

$480,382.82

$507,200.00

$434,005.69

$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!