14) The Studio Furniture Company manufactures leather recliners. In February, the firm's Assembly Division started production of 50,000 leather recliners. During the month, the firm completed...

14) The Studio Furniture Company manufactures leather recliners. In February, the firm's Assembly Division started production of 50,000 leather recliners. During the month, the firm completed 55,000 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 the accounting manager. The Operations Manager reported that the beginning work in process was 30% complete as to conversion costs, while ending work-in process was 80% completed as to conversion costs.

Beginning Inventory

Direct materials $24,000

Conversion costs$35,000

Manufacturing costs added during the accounting period

Direct materials $168,000

Conversion costs$278,000

Required:

Using the FIFO method, determine how many units that were started in February were completed during February?

A) 20,000 units.

B) 25,000 units.

C) 30,000 units.

D) 35,000 units.

E) 40,000 units.

15) The owner of Sammy's Uniform Shoppe hired a new accounting manager to oversee the accounting operations at the firm. The new accounting manager discussed the recession with the owner and the owner asked the new accounting manager if it mattered to use the weighted average method or the last-in, first-out method of accounting in periods of economic downturn. What should the new accounting manager say to the owner?