ersion costs are added evenly during the testing department’s process. As work in assembly is completed, each unit is immediately tr
Transferred-in costs, weighted-average method (related to 17-36–17-38). Larsen Company, as you know, 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 immediately transferred to Finished Goods.
Larsen Company uses the weighted-average method of
| Car Seats | Transferred Costs | Direct Materials | Conversion Costs | |
| Work in process, Oct 1 | 7500 | $ 2932500 | § 0 | $ 835460 |
| Started during October 2017 | ? | |||
| Completed Oct 2017 | 26300 | |||
| Work in Process, Oct 31 | 3700 | |||
| Total costs addid during Oct. 2017 | $ 717500 | $ 9704700 | $ 3955900 |
aDegree of completion: transferred-in costs,?%; direct materials,?%; conversion costs, 70%.
bDegree of completion: transferred-in costs,?%; direct materials,?%; conversion costs, 60%.
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 2017, 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
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 4 images
