Manama Company manufactures car seats. Each car seat passes through the assembly department and the testing department This problem focuses on the assembly department. The process-costing system at Manama 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 Manama Company uses the weighted average method of process costing Data for the assembly department for October 2001 are as follows: Physical Units (Car Seats) Direct Materials Work in process, October 1* 5,000 $1,250,000 Started during October 2021 20,000 Completed during October 22,500 2021 Work in process, October 2,500 31 Total costs added during October 2021 *Degree of completion: direct materials 100%; conversion costs, 60%. **Degree of completion: direct materials, 100%; conversion costs, 70%. Conversion Costs $402,750 $4,500,000 $2,337,500