1. 18-36. WEIGHTED-AVERAGE METHOD. Hoffman Company manufactures car seats in its Boise 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 Hoffman 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.
   1. Hoffman Company uses the weighted-average method of process costing. Data for the assembly department for October 2020 are as follows:

• Required
  1. 1. For each cost category, compute equivalent units in the assembly department. Show physical units in the first column of your schedule.
  2. 2. What issues should the manager focus on when reviewing the equivalent-unit calculations?
  3. 3. For each cost category, summarize total assembly department costs for October 2020 and calculate cost per equivalent unit.
  4. 4. Assign costs to units completed and transferred out and to units in ending work in process.
• For each category (Direct Materials and Conversion Costs), make sure to complete the five steps of process costing to prepare the cost of production report.
• Discuss issues the manager should focus on when reviewing equivalent units of production calculation.
• Outline how to allocate cost to units finished and transferred out and units in ending work in process inventory.
• Using Excel, prepare a worksheet to complete the cost of production report.
• For Problem 18-37, include the journal entries in the excel worksheet prepared for the report in problem 18-36.

• 18-37. JOURNAL ENTRIES (CONTINUATION OF 18-36).
• Required
• Prepare a set of summarized journal entries for all October 2020 transactions affecting Work in ProcessAssembly. Set up a T-account for Work in ProcessAssembly and post your entries to it.
• 18-38. FIFO METHOD (CONTINUATION OF 18-36).
• Required
  1. 1. Do Problem 18-36 using the FIFO method of process costing. Explain any difference between cost per equivalent unit in the assembly department under the weighted-average method and the FIFO method.
  2. 2. Should Hoffmans managers choose the weighted-average method or the FIFO method? Explain briefly.

b Degree of completion: direct materials,?\%; conversion costs, 65%