Burleson Company manufactures car seats in its Albany 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 Burleson 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. Burleson Company uses the weighted-average method of process costing. Data for the assembly department for October 2014 are as follows:

	Physical unint	Direct Materials	Conversion costs
Work in process, Oct 1a	5,000	$1,480,000	$486,000
Started during Oct 2014	23,000
Completed during Oct 2014	26,000
Work in process, Oct 31b	2,000
Total costs added Oct 2014		$4,876,000	$2,597,000

Superscript a Degreeof completion: direct materials, ?%; conversion costs,60%.

Superscript b Degree of completion: direct materials, ?%; conversion costs,75%.

Requirements

1. For each cost category, compute units in the assembly department. Show physical units in the first column of tour schedule.

2. What issues should the manager focus on when reviewing the equivalent units calculation?

3. For each cost category, summarize total assembly department cost for Oct 2014 and calculate the cost per equivant unkt.

4. Assign costs to units completed and transferred out and to units in ending work in process.