18-39 Transferred-in costs, weighted-average method. Hoffman Company is a manufacturer of car seats. Each car seat passes through the assembly department and 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 imme- diately transferred to Finished Goods. Hoffman Company uses the weighted average method of process costing. Data for the testing depart- ment for October are as follows: Conversion Costs $ 499,790 Physical Units Transferred- Direct (Car Seats) in Costs Materials Work-in-process, October 19 5,500 $2,931,000 $ 0 Transferred in during October ? Completed during October 29,800 Work-in-process, October 31 1,700 Total costs added during October $8,094,000 $10,877,000 *Degree of completion; transferred-in costs,7%, direct materials,7%; conversion costs, 65%. *Degree of completion: transferred-in costs,7%; direct materials,7%; conversion costs, 45%. $4,696,260 Required 1. What is 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 cost category, compute equivalent units in the testing department Show physical units in the first column of your schedule. 3. For each cost category, summarize total testing department costs for October, calculate the cost per equivalent unit, and assign costs to units completed (and transferred out) and to units in ending work-in- process 4. Prepare journal entries for October transfers from the assembly department to the testing department and from the testing department to Finished Goods. 18-40 Transferred-in costs, FIFO method continuation of 18-39). Refer to the information in Problem 18-39. Suppose that Hoffman Company uses the FIFO method instead of the weighted average method in all of its departments. The only changes to Problem 18-39 under the FIFO method are that total transferred-in costs of beginning work-in-process on October 1 are $2,879,000 (instead of $2,931,000) and that total transferred-in costs added during October are $9,048,000 (instead of $8,094,000). Required Using the FIFO process-costing method, complete Problem 18-39