Honesty Manufacturing Company manufactures a standard recliner. In December, the firm’s Assembly Department started production of 75,000 chairs. During the month, the firm completed 80,000 chairs and...

Honesty Manufacturing Company manufactures a standard recliner.  In December, 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 which is 80% completed.  There were 15,000 chairs in the beginning inventory which is 30% completed.  All direct materials costs are added at the beginning of the production cycle, and conversion costs are added uniformly throughout the process.  The FIFO method is used.

                                          Direct Materials       Conversion Costs
Beginning inventory               84,000                   122,500
Costs added                          588,000                       970,270

The cost of the units completed during December is


A. 1,556,800
B. 1,593,410
C. 1,471,400
D. 1,264,900