Company manufactures car seats in its Houston plant. Each car seat passes through the assembly department and the testing department. This problem focuses on the testing department. Direct materials are added when the testing department process is 90% complete. Conversion costs are added evenly during the testing department's process. As work in assembly is completed, each unit is immediately transferred to testing. As each unit is completed in testing, it is immediately transferred to Finished Goods. Burleson Company uses the FIFO method of process costing. Data for the testing department for October 2020 are as follows:

Physical Units	Transferred-In	Direct	Conversion
	(Car Seats)	Costs	Materials	Costs

Work in process, October 1a	7,700	$2,882,000	$0	$991,530
Transferred in during October 2020	?
Completed during October 2020	25,300
Work in process, October 31b	3,900
Total costs added during October 2020		$7,482,000	$9,361,000	$3,684,750

aDegree

of completion: transferred-in costs, ?%; direct materials, ?%; conversion costs,

80%.

bDegree

of completion: transferred-in costs, ?%; direct materials, ?%; conversion costs,

65%.

2. For each cost category, compute equivalent units in the testing department. Show physical units in the first column of your schedule.

3.

For each cost category, summarize total testing department costs for October

20142014,

calculate the cost per equivalent unit, and assign costs to units completed (and transferred out) and to units in ending work in process.

4.

Prepare journal entries for October transfers from the assembly department to the testing department and from the testing department to Finished Goods.