Tomlinson Company manufactures car seats in its Houston plant. Each car seat passes through the assembly department and the testing department. This problem focuses on the testing department. Direct materials are added when the testing department process is 90% complete. Conversion costs are added evenly during the testing department's process. As work in assembly is completed, each unit is immediately transferred to testing. As each unit is completed in testing, it is immediately transferred to Finished Goods. Tomlinson Company uses the FIFO method of process costing. Data for the testing department for October 2017 are as follows:

Read the requirements2.

Requirement 1. What are the percentage of completion for (a) transferred-in costs and direct materials in beginning work-in-process inventory and (b) transferred-in costs and direct materials in ending work-in-process inventory?

Transferred-in costs Direct materials

(a)

Beginning work-in-process inventory

(1)

(2)

(b)

Ending work-in-process inventory

(3)

(4)

Requirement 2. For each costcategory, compute equivalent units in the testing department. Show physical units in the first column of your schedule. (For amounts with a 0balance, make sure to enter"0" in the appropriatecell.)

Equivalent Units Transferred-In

Direct

Conversion

Physical Units

Costs

Materials

Costs

Work in process, beginning

Transferred-in during the current period

To account for

Completed and transferred out during the current period:

From beginning work in process

Started and completed

Work in process, ending

Accounted for

The equivalent of units of work done in current

Requirement 3. For each costcategory, summarize total testing department costs for October

2017,

calculate the cost per equivalentunit, and assign costs to units completed(and transferredout) and to units in ending work in process.

Begin by summarizing the total costs to account for. (For amounts with a 0balance, make sure to enter"0" in the appropriatecell.)

Total

Transferred-In

Direct

Conversion

Production Costs

Costs

Materials

Costs

(5)

(6)

Total costs to account for

Calculate the cost per equivalent unit fortransferred-in costs, directmaterials, and conversion costs. (Round the cost per equivalent unit amounts to four decimalplaces.)

Transferred-In

Direct

Conversion

Costs

Materials

Costs

(7)

Divide by

(8)

Cost per equivalent unit

Assign total costs to units completed(and transferredout) and to units in ending work in process.

Begin by calculating the total from the beginning inventory, then calculate the total costs accounted for. (For amounts with a 0 balance, make sure to enter "0" in the appropriate cell. Round your answers to the nearest whole dollar.)

Total

Transferred-In

Direct

Conversion

Production Costs

Costs

Materials

Costs

Completed and transferred out:

(9)

(10)

Total from beginning inventory

(11)

Total costs of units completed and transferred out

(12)

Total costs accounted for

Requirement 4. Prepare journal entries for October transfers from the assembly department to the testing department and from the testing department to Finished Goods. (Record debitsfirst, then credits. Exclude explanations from any journalentries.)

Begin by recording the transfer from the assembly department to the testing department.

Journal Entry

Date

Accounts

Debit

Credit

(13)

(14)

(15)

(16)

Now record the transfer from the testing department to Finished Goods.

Journal Entry

Date

Accounts

Debit

Credit

(17)

(18)

(19)

(20)

1: Data Table

Physical Units

Transferred-In

Direct

Conversion

(Car Seats)

Costs

Materials

Costs

Work inprocess, October1a

8,100

$2,876,000

$0

$914,700

Transferred in during October 2017

?

Completed during October 2017

30,300

Work inprocess, October31b

4,300

Total costs added during October 2017

$9,248,500

$11,301,900

$4,614,760

a Degree of completion: transferred-in costs, ?%; direct materials, ?%; conversioncosts, 80%.

b Degree of completion: transferred-in costs, ?%; direct materials, ?%; conversion costs, 70%.

2: Requirements

1. What are the percentage of completion for (a) transferred-in costs and direct materials in beginning work-in-process inventory and (b) transferred-in costs and direct materials in ending work-in-process inventory?
2. For each costcategory, compute equivalent units in the testing department. Show physical units in the first column of your schedule.
3. For each costcategory, summarize total testing department costs for October

2017, calculate the cost per equivalentunit, and assign costs to units completed(and transferredout) and to units in ending work in process.

1. Prepare journal entries for October transfers from the assembly department to the testing department and from the testing department to Finished Goods.