St. Germaine Company manufactures car seats in itsAlbany plant. Each car seat passes through the assembly departmentand testing department. This problem focuses on the testingdepartment. Direct materials are added when the testing departmentprocess is 95% complete. Conversion costs are added evenly duringthe testing? department's process. As work in assembly is?completed, each unit is immediately transferred to testing. As eachunit is completed in? testing, it is immediately transferred toFinished Goods. St. Germaine Company uses the? weighted-averagemethod of process costing. Data for the testing department forOctober 2017 are as? follows:
| Physical Units (Car Seats) | Transferred-In Costs | Direct Materials | Conversion Costs |
| Work in progress, October 1^a | 5,500 | $ 2,934,000 | $ 0 | $ 550,195 |
| Transferred in during October 2017 | ? | | | |
| Completed during October 2017 | 29,800 | | | |
| Work in progress, October 31^b | 1,700 | | | |
| Total costs added during October 2017 | | $ 8,154,000 | $ 10,966,400 | $ 4,615,290 |
a.) Degree of? completion: transferred-in? costs, ?%; direct?materials, ?%; conversion? costs, 65?%.
b.) Degree of? completion: transferred-in? costs, ?%; direct?materials, ?%; conversion? costs, 45?%.
Questions:
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 directmaterials in ending? work-in-process inventory?
2.) For each cost? category, compute equivalent units inthe testing department. Show physical units in the first column ofyour schedule.
3.) For each cost? category, summarize total testingdepartment costs for October 2017?, calculate the cost perequivalent? unit, and assign costs to units completed? (andtransferred?out) and to units in ending work inprocess.
4.) Prepare journal entries for October transfers fromthe assembly department to the testing department and from thetesting department to Finished Goods.
