St. Germaine Company manufactures car seats in its Chicago plant. Each car seat passes through the assembly department and the testing department. This problem focuses on the assembly department.

REQUIREMENTS

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 2017 and calculate the cost per equivalent unit.

4. Assign costs to units completed and transferred out and to units in ending work in process.

Physical Units Direct Conversion (Car Seats) Materials Costs 4,500 1,102,500 $475,875 Work in process, October 1 Started during October 2012 Completed during October 2012 Work in process, October 31 Total costs added during October 2012 "Degree of completion: direct materials, ?%; conversion costs, 60%. bDegree of completion: direct materials, ?96, conversion costs, 75%. 20,500 22,500 2,500 $3,997,500 $2,059,125