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 to view information about Hoffman Company's process-costing system) Data for the assembly department for October 2017 are as follows: (Click the icon to view the assembly department data.) (Click the icon to view the weighted-average cost per equivalent unit data and total costs accounted for) Requirement 1. For each cost category, compute equivalent units in the assembly department. Show physical units in the first column of your schedule. (For amounts with a 0 balance, make sure to enter "0" in the appropriate cell) Equivalent Units Physical Direct Flow of Production Units Materials Conversion Costs Work in process beginning More info 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 Print Done - X o view o view e cost accoun artment S enter "0" in nits version Costs ew Work in process, October 1 Started during October 2017 Completed during October 2017 Work in process, October 31b Total costs added during October 2017 Physical Units (Car Seats) Direct Conversion jew 4,000 Materials $1,248,000 Costs cost $241,650 coun 22,500 26,000 500 $4,635,000 $2,575,125 Degree of completion: direct materials, ?%; conversion costs, 45% "Degree of completion: direct materials, ?% conversion costs, 65% ment S er "0" in Print Done sion ES I on I Reference Sa Direct Materials Conversion Costs nt for Octob ssembly tion 1 Costs incurred to date $ 5,883,000 $ stion Divide by equivalent units of work done to date Cost per equivalent unit for work done to date 26.500 2.916 775 26.325 quivalent uni of S 222 $ 107 Total Direct Conversion Production Costs Materials Costs estion 3 Completed and transferred out Work in process ending Jestion Total costs accounted for 8.554.000 S 5,772,000 $ 2782.000 w physical 145,775 111.000 34.775 8.699 776 S 5,883,000 $ 2816.775 Question 5 Print Done st Requirements 3 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 4 15 Print Done X artm in the a per E nted f t. Show 0 in the