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25. Happy Baby Company manufactures car seats in its San Diego plant. Each car seat passes through the assembly department and the testing department. This
25. Happy Baby Company manufactures car seats in its San Diego 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 Happy Baby 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. Happy Baby uses the weighted average method of process costing. Data for the assembly department for October 2014 are as follows: Work in process, October 15,000 units, direct materials cost $1,250,000, conversion costs $402,750 20,000 units were started during October 22,5000 units were completed during October 2,500 units in ending inventory Total costs added during October $4,500,000 of direct materials and $2,337,500 of conversion costs Degree of completion for conversion costs beginning inventory is 60% Degree of completion for conversion costs ending inventory is 70% Compute the equivalent units in the assembly department for direct materials. Compute the equivalent units in the assembly department for conversion costs. Compute the cost per equivalent unit for direct materials. Compute the cost per equivalent unit for conversion costs. . Compute the costs of goods completed and transferred to the testing department during October. Compute the cost of work in process as of October 31, 2014
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