Preston 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.

Physical Units		Direct		Conversion
		(Car Seats)		Materials	Costs
Work in process, October 1 Superscript aOctober 1a	6,000		$1,779,000			$585,000
Started during October 20172017	23,500
Completed during October 20172017	25,500
Work in process, October 31 Superscript bOctober 31b	4,000
Total costs added during October 20172017			$4,888,000			$2,863,500

Degree of completion: direct materials, ?%; conversion costs, 60%.

Degree 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-unit calculations?
3.	For each cost category, summarize total assembly department costs for October 20172017 and calculate the cost per equivalent unit.
4.	Assign costs to units completed and transferred out and to units in ending work in process.

		Equivalent Units
	Physical	Direct	Conversion
Flow of Production	Units	Materials	Costs
Work in process beginning
Started during current period
To account for
Completed and transferred out during current period
Work in process, ending
Accounted for
Work done to date