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Jabri Ltd manufactures car seats in its Newlands plant. Each car seat passes through the Assembly Department and the Testing Department. This problem focuses on

Jabri Ltd manufactures car seats in its Newlands 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 Jabri Ltd 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. Jabri Ltd uses the weighted-average method of process costing. Data for the Assembly Department for October 2023 are: Physical Units Direct Materials Conversion Work in process, 1 October 5,000 $2,500,000 $2,200,000 Degree of completion: conversion costs, 60% Started during October 2022 45,000 Completed during October 2022 50,000 Work in process, 31 October Degree of completion: conversion costs, 70% 2,500 Total costs added during October 2022 $6,600,000 $6,300,000 Required: 1 Calculate equivalent units of direct materials and conversion costs. [2 marks] 2 Summarise total costs to account for [2 marks] 3 Calculate the cost per equivalent unit for direct materials and conversion costs. [4 marks] 3 Assign total costs to units completed and to units in ending work in process. [4+4 marks] 4 Explain why the company would be using a process-costing system, rather than a job-costing system. [10 marks]

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