Weighted-average method. Larsen Corp. manufactures car seats in its Sarnia plant. Each @

car seat passes through the Assembly Department and the Testing Department. This problem 4 jo4a\cost of workin process focuses on the Assembly Department. The process-costing system at Larsen Corp. has a sin- $772,750 .

gle direct-cost category (direct materials) and a single indirect-cost category (conversion costs). Direct materials are added at the beginning of the process. Conversion costs are added evenly during the process. When the Assembly Department finishes work on each car seat, it is immediately transferred to Testing.

Larsen Corp. uses the weighted-average method of process costing. Data for the Assembly Department for October 2010 are:

REQUIRED 1. For each cost category, compute equivalent units of work done in October 2010 in the Assembly Department. Show physical units in the first column of your schedule.
2. For each cost category, summarize total Assembly Department costs for October 2010 and calculate the cost per equivalent unit.
3. Assign total costs to units completed and transferred out and to units in ending work in process.LO1

Transcribed Image Text:

Work in process, October 1* Started during October 2010 Completed during October 2010 Physical Units (car seats) Direct Materials Conversion Costs 5,000 $1,250,000 $ 402,750 20,000 22,500 Work in process, October 31+ 2,500 Total costs added during October 2010 $4,500,000 $2,337,500