Managerial Accounting

Question 3 Carson Company, manufactures car seats. Each car seat passes through the assembly department and testing department. In 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 the assembly is completed, each unit is immediately transferred to testing. As each unit is completed in testing, it is immediately transferred to Finished Goods. Carson Company uses the weighted-average method of process costing. Data for the testing department for October 2014 are as follows: Physical Units Transferred- Direct Conversion (Car Seats) In Costs Materials Costs Work in process, October 1# 7,500 $2,932,500 $ 0 $ 835,460 Transferred in during October 2014 ? Completed during October 2014 26,300 Work in process, October 31 b 3,700 Total costs added during October 2014 $7,717,500 $9,704,700 $3,955,900 "Degree of completion: transferred-in costs,?%; direct materials,?%%; conversion costs, 70%. "Degree of completion: transferred-in costs,?%; direct materials,?%; conversion costs, 60%. Required: a. What is the percentage of completion for transferred-in costs and direct materials in beginning work-in-process inventory b. What is the percentage of completion for transferred-in costs and direct materials in ending work-in-process inventory C. For each cost category, compute physical and equivalent units; summarize the total testing department costs; cost per equivalent unit; assign costs to units completed and transferred out and ending work in process