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HELP SOLVE PLEASE! Berrian Company manufactures car seats in its Houston plant. Each car seat passes through the assembly department and the testing department. This
HELP SOLVE PLEASE! Berrian 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 assembly department. More info The processcosting system at Berrian Company has a single directcost categorydirect materials and a single indirectcost categoryconversion 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. Berrian Company uses the FIFO method of process costing. Requirements are as follows
For each cost category, compute equivalent units in the assembly department. Show physical units in the first column of your schedule.
For each cost category, summarize total assembly department costs for October and calculate the cost per equivalent unit.
Assign total costs to units completed and transferred out and to units in ending work in process.
Explain any difference between cost per equivalent unit in the assembly department under the weightedaverage method and the FIFO method.
Should Berrians managers choose the weightedaverage method or the FIFO method? Explain briefly.
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