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Kaeding Company manufactures car seats in its Boise plant. Each car seat passes through the assembly department and the testing department. This problem focuses on
Kaeding 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 Kaeding 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. Kaeding Company uses the weighted-average method of process costing. Data for the assembly department for October 2014 are as follows: For each cost category, compute equivalent units in the assembly department. Show physical units in the first column of your schedule. What issues should the manager focus on when reviewing the equivalent units calculation? For each cost category, summarize total assembly department costs for October 2014 and calculate the cost per equivalent unit. Assign costs to units completed and transferred out and to units in ending work in process. Work in process beginning Started during current period To account for Completed and transferred out during current period Work in process, ending Accounted for
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