31) 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 78,600 chairs, and transferred them to the Finishing Department. The firm ended the month with 10,100 chairs in ending inventory. There were 15,700 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 35% complete as to conversion costs, while ending work in process was 85% complete as to conversion costs.

Beginning inventory:

Direct materials $24,400

Conversion costs $36,000

Manufacturing costs added during the accounting period:

Direct materials $168,500

Conversion costs $278,500

What is the cost of the goods transferred out during February?

(Round intermediary calculations to the nearest cent.)

A) $429,194.09

B) $454,987.05

C) $478,261.76

D) $507,400.00

Answer: B

Explanation: Number of units started and completed during February = 73,000 chairs (Units started in production) 10,100 chairs (Ending inventory) = 62,900 chairs

Number of equivalent units in beginning inventory = 10,205 (15,700 0.65)

Total equivalent units for conversion costs = 10,205 + 62,900 + 8585 = 81,690 units

Direct material cost per unit = $168,500 / 73,000 = $2.31

Direct materials cost assigned to ending work-in-process inventory = $2.31 10,100 = $23,331

Work in process, beginning inventory $24,400 + $36,000 = $60,400

Costs added to beginning inventory = 15,700 0.65 $3.41 = $34,799.05

Started and completed

Direct materials = $2.31 62,900 =$145,299

Conversion costs =

[$278,500 /(10,205 + 8585 + 62,900)] 62,900 = $214,489.00

Total costs of units completed and transferred out = $454,987.05

I GOT THE ANSWER BUT HOW TO GET $3.41 FROM COST ADDED TO BEGINNING INVENTORY.