Larsen Company manufactures car seats in its San Antonio 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 Larsen 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. Larsen Company uses the weighted average method of process costing. Data for the assembly department for October 2012 are as follows: Physical Units Direct Conversion (Car Seats) Materials Costs Work in process, October 1" 5,000 $1,250,000 S 402,750 Started during October 2012 20,000 Completed during October 2012 22,500 Work in process, October 315 2,500 Total costs added during October 2012 $4,500,000 $2,337,500 *Degree of completion direct materials, 7%; conversion costs, 50% Degree of completion direct materials. 7%; conversion costs, 70% a) For each cost category, compute equivalent units in the assembly department. Show physical units in the first column of your schedule. b) For each cost category, summarize total assembly department costs for October 2012 and calculate the cost per equivalent unit. c) Assign total costs to units completed and transferred out and to units in ending work in process. d) Do the problem using Weighted Average method and FIFO method of process costing. e) Explain any difference between the cost per equivalent unit in the assembly department under the weighted average method and the FIFO method