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answer only 18-37 please 18-36 Weighted average method. Larsen Company manufactures car seats in its San Antonio plant. Each car seat passes through the assembly
answer only 18-37 please
18-36 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 cat- egory (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 2020 are as follows: Physical Units Direct Conversion (Car Seats) Materials Costs Work in process, October 1" 5,000 $1,250,000 S 402,750 Started during October 2020 20,000 Completed during October 2020 22,500 Work in process, October 316 2,500 Total costs added during October 2020 S4,500,000 $2,337,500 Degree of completion direct materials.7%, conversion costs, 80% Degree of completion direct materials.7%conversion costs, 70% 1. For each cost category.compute equivalent units in the assembly department. Show physical units in the first column of your schedule. 2. What issues should the manager focus on when reviewing the equivalent units calculation? 3. For each cost category, summarize total assembly department costs for October 2020 and calculate the cost per equivalent unit. 4. Assign costs to units completed and transferred out and to units in ending work in process. 18-37 Journal entries (continuation of 18-36). Prepare a set of summarized journal entries for all October 2020 transactions affecting Work in Process- Assembly. Set up a T-account for Work in Process-Assembly and post your entries to it. 18-38 FIFO method (continuation of 18-36). 1. Do Problem 18-36 using the FIFO method of process costing. Explain any difference between the cost per equivalent unit in the assembly department under the weighted average method and the FIFO 2. Should Larsen's managers choose the weighted-average method or the FIFO method? Explain briefly. Required Required Required method Step by Step Solution
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