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17-36 Weighted-average method. Hoffman Company manufactures car seats in its Boise 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 Hoffman 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.

Hoffman Company uses the weighted-average method of process costing. Data for the assembly department

for October 2017 are as follows:

Required

aDegree of completion: direct materials,?%; conversion costs, 45%.

bDegree of completion: direct materials,?%; conversion costs, 65%.

Physical Units

(Car Seats)

Direct

Materials

Conversion

Costs

Work in process, October 1a 4,000 $1,248,000 $ 241,650

Started during October 2017 22,500

Completed during October 2017 26,000

Work in process, October 31b 500

Total costs added during October 2017 $4,635,000 $2,575,125

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.

17-37 Journal entries (continuation of 17-36).

Prepare a set of summarized journal entries for all October 2017 transactions affecting Work in Process

Assembly. Set up a T-account for Work in ProcessAssembly and post your entries to it.

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