Preston Company manufactures car seats in its San Antonio plant.Each car seat passes through the assembly department and thetesting department. This problem focuses on the assemblydepartment.
Physical Units
| Direct | Conversion | |
| (Car Seats) | Materials | Costs |
Work in? process, October 1 Superscript aOctober 1a | 6,000 | $1,779,000 | $585,000?? |
Started during October 20172017 | 23,500 | | |
Completed during October 20172017 | 25,500 | | |
Work in? process, October 31 Superscript bOctober 31b | 4,000 | | |
Total costs added during October 20172017 | | $4,888,000 | $2,863,500?? |
| | | | | | | |
Degree of? completion: direct? materials, ?%; conversion? costs,60?%.
Degree of? completion: direct? materials, ?%; conversion? costs,75?%.
1. | For each cost? category, compute equivalent units in theassembly department. Show physical units in the first column ofyour schedule. |
2. | What issues should the manager focus on when reviewing the?equivalent-unit calculations? |
3. | For each cost? category, summarize total assembly departmentcosts for October 20172017 and calculate the cost per equivalent unit. |
4. | Assign costs to units completed and transferred out and to unitsin ending work in process. |
| | Equivalent Units |
| Physical | Direct | Conversion |
Flow of Production | Units | Materials | Costs |
Work in process beginning | | | |
Started during current period | | | |
To account for | | | |
Completed and transferred out during current period | | | |
Work in process, ending | | | |
Accounted for | | | |
Work done to date | | | |
