Jabn Ltd manufactures car seats in its Newlands plant. Each car seat passes through the...
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Jabn Ltd manufactures car seats in its Newlands 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 Jabn Ltd 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 nishes work on each car seat, it is immediater transferred to Testing. Jabn Ltd uses the weightedaverage method of process costing. Data for the Assembly Department for October 2023 are: Physical Units Direct Materials Conversion W rk ' '| Octob 0.3.. Jmmm 05.5%.... 5,000 $1 250,000.00 $ 402,?50.00 Started during October 2022 20,000 Completed during October 2022 22,500 lWork in process, 31 October Degee magnum: Mm costs. r00, 2,500 Total costs added during October 2022 $4,500,000.00 $2,33?,500.00 Required: I Calculate equivalent units ofdirect materials and conversion costs [2 marks] Summa rise total costs toaccount for [2 marks] Calculate the cost per equivalent unit for direct materials and conversion costs. [4 marks] Assign total costs to units completed and to units in ending work in process. [4+4 marks] Explain why the company would be using a processcosting system. rather than a job-costing system. [10 marks] bLJLJM
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