17-30 Weighted average method. Larsen Company manufactures car seats in its San Antonio plant. Each car seat passes through the assembly department and the testing department. This problem focuses on the assembly department. The process-costing system at Larsen Company has a single 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 Company uses the weighted average method of process costing. Data for the assembly depart- ment for October 2012 are as follows: Direct Materials $1,250,000 Conversion Costs $ 402,750 Physical Units (Car Seats) Work in process, October 10 5,000 Started during October 2012 20,000 Completed during October 2012 22,500 Work in process, October 310 2,500 Total costs added during October 2012 "Degree of completion: direct materials, 2%; conversion costs, 60%. Degree of completion direct materials, ?%conversion costs, 70%. $4,500,000 $2,337,500