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The process$-$costing system at Berrian 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. Berrian Company uses the

FIFO method of process costing.

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