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Larsen Company, as you know, is a manufacturer of car seats. Each car seat passes through the assembly department and testing department. This problem focuses

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Larsen Company, as you know, is a manufacturer of car seats. Each car seat passes through the assembly department and testing department. This problem focuses on the testing department. Direct materials are added when the testing department process is 90% complete. Conversion costs are added evenly during the testing department's process. As work in assembly is completed, each unit is immediately transferred to testing. As each unit is completed in testing, it is immediately transferred to Finished Goods. Larsen Company uses the weighted-average method of process costing. Data for the testing department for October 2012 are as follows: Physical Units Transferred-In Direct Conversion (Car Seats) Costs Materials Costs Work in process, October 1" 7,500 $2,932,500 0 $ 835,460 Transferred in during October 2012 ? Completed during October 2012 26,300 Work in process, October 316 3,700 Total costs added during October 2012 $7,717,500 $9,704,700 $3,955,900 "Degree of completion transferred-in costs, 7%; direct materials, 7%; conversion costs, 70%. "Degree of completion: transferred-in costs, 7%; direct materials, 7%; conversion costs, 60% a) What is the percentage of completion for (a) transferred-in costs and direct materials in beginning work-in-process inventory, and (b) transferred-in costs and direct materials in ending work-in-process inventory? b) For each cost category, compute equivalent units in the testing department. Show physical units in the first column of your schedule. c) For each cost category, summarize total testing department costs for October 2012, calculate the cost per equivalent unit, and assign total costs to units completed (and transferred out) and to units in ending work in process. d) Suppose that Larsen Company uses the FIFO method instead of the weighted average method in all of its departments. The only changes to the problem under the FIFO method are that total transferred-in costs of beginning work in process on October 1 are $2,881,875 (instead of $2,932,500) and that total transferred-in costs added during October are $7,735,250 (instead of $7,717,500). Using the FIFO process-costing method, complete the same

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