Preston Company manufactures car seats in its Hartford 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 Preston 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. Preston Company uses the weighted-average method of process costing. Data for the assembly department for October 2014 are as follows:

Physical Units

Direct

Conversion

(Car Seats)

Materials

Costs

Work in process, October 1 Superscript aOctober 1a

4,500

$1,102,500

$475,875

Started during October 2014

20,500

Completed during October 2014

22,500

Work in process, October 31 Superscript bOctober 31b

2,500

Total costs added during October 2014

$3,997,500

$$2,059,125

Superscript aaDegree

of completion: direct materials, ?%; conversion costs,

60%.

Superscript bbDegree

of completion: direct materials, ?%; conversion costs,

75%.

1. For each cost category, compute equivalent units in the assembly department. Show physical units in the first column of your schedule. 2. What issues should the manager focus on when reviewing the equivalent units calculation? 3. For each cost category, summarize total assembly department costs for October 20142014 and calculate the cost per equivalent unit. 4. Assign costs to units completed and transferred out and to units in ending work in process.