Question
Hoffman Company manufactures car seats in its Boise plant. Each car seat passes through the assembly department and the testing department. This problem focuses
Hoffman Company manufactures car seats in its Boise plant. Each car seat passes through the assembly department and the testing department. This problem focuses on the assembly department. (Click the icon for Hoffman's process-costing system information.) Data for the assembly department for October 2017 are as follows: (Click the icon to view the assembly department data.) Read the requirements. Physical Units Direct Conversion Work in process, October 1 Started during October 2017 Completed during October 2017 Work in process, October 31b Total costs added during October 2017 (Car Seats) 4,000 Materials Costs $1,248,000 $241,650 22,500 26,000 500 $4,635,000 $2,575,125 aDegree of completion: direct materials, ?%; conversion costs, 45%. "Degree of completion: direct materials, ?%; conversion costs, 65%. 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-unit calculations? 3. For each cost category, summarize total assembly department costs for October 2017 and calculate the cost per equivalent unit. 4. Assign costs to units completed and transferred out and to units in ending work in process.
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