Larsen Company is a manufacturer of car seats. Each car seat passes through 1st the assembly department and 2nd 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 departments 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. Suppose that Larsen Company uses FIFO in all of its departments. Data for the testing department for October 2014 are as follows:

Physical Transferred- Direct Conversion

units In Costs Materials Costs

Beg. work in process ^a 7,500 $2,800,000 $0 $835,460

Transferred in currently ? =_____ <------ question

Units Completed [UC] 26,300

End. work in process ^b 3,700

Total costs added currently - - - - - - - $7,735,250 $9,704,700 $3,955,900

----------------------------------- ^aDegree of completion: transferred-in,?____%; direct materials,0%; conversion, 70%.

^bDegree of completion: transferred-in costs,100%; direct materials,0%; conversion costs, 60%.

[And answer Question 1-5 step by step]

Required: Fill in the blanks ABOVE and below. Grading will NOT consider your format and step-by-step solution:

1.a. Are the %s on Beg. Inventory REQUIRED for YOU to compute the equivalent units in the Required Item 1 below? Y/N? ____.

1.b. Compute the Current-periods equivalent units in the TESTING department:

For the Transferred-in ______________, Direct Material ________________, and Conversion _____________________.

2. Is the total equivalent units the total of OUTPUT or INPUT done? My answer is its ________.

4. Calculate the Current-periods Cost per equivalent unit for:

the Transferred-in ______________, Direct Material ________________, and

Conversion _______________.

5. Assign costs to the units completed and transferred out: $___________________;

and to those in ending work in process: $___________________.