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17-41 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.

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17-41 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. LO 4 Hoffman Company uses the weighted-average method of process costing. Data for the assembly department for October 2017 are as follows: Direct Conversion Physical Units (Car Seats) Materials Costs Work in process, October 190 4,000 $1,248,000 $ 241,650 Started during October 2017 22,500 Completed during October 26,000 2017 500 Work in process, October 3160 $4,635,000 $2,575,125 Total costs added during October 2017 a Degree of completion: direct materials, ?%; conversion costs, 45%. b Degree of completion: direct materials, ?%; conversion costs, 65%. Required 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? 17-42 JOURNAL ENTRIES (continuation of 17-410). LO 5 Required 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 Process-Assembly and post your entries to it. 17-43 FIFO METHOD (continuation of 17-419). LO 5 Required 1. Do Problem 17-420 using the FIFO method of process costing. Explain any difference between the cost per equivalent unit in the assembly department under the weighted- average method and the FIFO method. 2. Should Hoffman's managers choose the weighted-average method or the FIFO method? Explain briefly

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