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x P'17-36 (similar to) Tomlinson Company manufactures car seats in its Seattle plant. Each car seat passes through the assembly department and the testing department. This problem focuses on the assembly department. (Click the icon for Tomlinson's process-costing system information.) Data for the assembly department for October 2017 are as follows: (Click the icon to view the assembly department data.) More Info Data Table - X The process-costing system at Tomlinson 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. Tomlinson Company uses the weighted average method of process costing. Conversion Costs $602,700 Physical Units Direct (Car Seats) Materials Work in process, October 19 5,600 $1,590,400 Started during October 2017 24,000 Completed during October 2017 26.500 Work in process, October 31 3.100 Total costs added during October 2017 $5,040,000 a Degree of completion direct materials, ?%, conversion costs, 70%. Degree of completion direct materials, ?%, conversion costs, 80%. Print Done $2,556,120 i Requirements - X Print Done 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? 3. For each cost category, summarize total assembly department costs for October 2017 and calculate the cost per equivalent unit. 4. Assign costs to units completed and transferred out and to units in ending work in process. Clear All St. Germaine Company manufactures car seats in its Denver plant. Each car seat passes through the assembly department and the testing department. This problem focuses on the assembly department. (Click the icon for St. Germaine's process-costing system information.) Data for the assembly department for October 2017 are as follows: (Click the icon to view the assembly department data.) Read the requirements. Requirement 1. For each cost category, compute equivalent units in the assembly department. Show physical units in the first column of your schedule. Physical Units Equivalent Units Direct Conversion Materials Costs Flow of Production 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 Requirement 2. What issues should the manager focus on when reviewing the equivalent-unit calculations? To show better performance, a department supervisor might report a higher degree of completion resulting in understated cost per equivalent unit and overstated operating income. In other words, estimates of degree of completion can help to smooth earnings from one period to the next. To guard against the possibility of bias, managers should ask supervisors specific questions about the process they followed. Top management should always emphasize obtaining the correct answer, regardless of how it affects reported performance. This emphasis drives ethical actions throughout the organization. Requirement 3. For each cost category, summarize total assembly department costs for October 2017 and calculate the cost per equivalent unit Begin by summarizing the total assembly department costs for October 2017 Requirement 3. For each cost category, summarize total assembly department costs for October 2017 and calculate the cost per equivalent unit. Begin by summarizing the total assembly department costs for October 2017 Total Production Costs Direct Materials Conversion Costs Work in process, beginning Costs added in current period Total costs to account for Now calculate the cost per equivalent unit for each cost category. Direct Materials Conversion Costs Costs incurred to date Divide by equivalent units of work done to date $ $ Cost per equivalent unit Requirement 4. Assign costs to units completed and transferred out and to units in ending work in process. Total Direct Conversion Production Costs Materials Costs Completed and transferred out Work in process, ending Total costs accounted for This question is complete. Move your cursor over or tap on the red arrows to see incorrect answers

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