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.

The process-costing system at Hoffman 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. Hoffman Company uses the FIFO method of process costing.

Data for the assembly department for October 2017 are as follows:

Physical Units Direct Conversion (Car Seats) Materials Costs Work in process, October 19 4,000 $1,248,000 $241,650 Started during October 2017 22,500 Completed during October 2017 26,000 Work in process, October 31b 500 Total costs added during October 2017 $4,635,000 $2,575,125 a Degree of completion: direct materials, ?%; conversion costs, 45%. bDegree of completion: direct materials, ?%; conversion costs, 65%. Direct Conversion Materials Costs Costs incurred to date $ 5,883,000 $ 26,500 2,816,775 26,325 Divide by equivalent units of work done to date $ 222 $ 107 Cost per equivalent unit for work done to date Total Direct Conversion Production Costs Materials Costs Completed and transferred out 8,554,000 $ 145,775 5,772,000 $ 111,000 2,782,000 34,775 Work in process, ending $ 8,699,775 $ 5,883,000 $ 2,816,775 Total costs accounted for i X Requirements 1. For each cost category, compute equivalent units in the assembly department. Show physical units in the first column of your schedule. 2. For each cost category, summarize total assembly department costs for October 2017 and calculate the cost per equivalent unit. 3. Assign total costs to units completed and transferred out and to units in ending work in process. 4. Explain any difference between the cost per equivalent unit in the assembly department under the weighted average method and the FIFO method. 5. Should Hoffman's managers choose the weighted average method or the FIFO method? Explain briefly