Tomlinson Company manufactures car seats in its Houston plant. Each car seat passes through the assembly department and the 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. Tomlinson Company uses the FIFO method of process costing. Data for the testing department for October 2017 are as follows: Read the requirements2. Requirement 1. What are 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? Transferred-in costs Direct materials (a) Beginning work-in-process inventory (1) (2) (b) Ending work-in-process inventory (3) (4) Requirement 2. For each cost category, compute equivalent units in the testing department. Show physical units in the first column of your schedule. (For amounts with a 0 balance, make sure to enter "0" in the appropriate cell.) Equivalent Units Transferred-In Direct Conversion Physical Units Costs Materials Costs Work in process, beginning Transferred-in during the current period To account for Completed and transferred out during the current period: From beginning work in process Started and completed Work in process, ending Accounted for The equivalent of units of work done in current Requirement 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. Begin by summarizing the total costs to account for. (For amounts with a 0 balance, make sure to enter "0" in the appropriate cell.) Total Transferred-In Direct Conversion Production Costs Costs Materials Costs (5) (6) Total costs to account for Calculate the cost per equivalent unit for transferred-in costs, direct materials, and conversion costs. (Round the cost per equivalent unit amounts to four decimal places.) Transferred-In Direct Conversion Costs Materials Costs (7) Divide by (8) Cost per equivalent unit Assign total costs to units completed (and transferred out) and to units in ending work in process. Begin by calculating the total from the beginning inventory, then calculate the total costs accounted for. (For amounts with a 0 balance, make sure to enter "0" in the appropriate cell. Round your answers to the nearest whole dollar.) Total Transferred-In Direct Conversion Production Costs Costs Materials Costs Completed and transferred out: (9) (10) Total from beginning inventory (11) Total costs of units completed and transferred out (12) Total costs accounted for Requirement 4. Prepare journal entries for October transfers from the assembly department to the testing department and from the testing department to Finished Goods. (Record debits first, then credits. Exclude explanations from any journal entries.) Begin by recording the transfer from the assembly department to the testing department. Journal Entry Date Accounts Debit Credit (13) (14) (15) (16) Now record the transfer from the testing department to Finished Goods. Journal Entry Date Accounts Debit Credit (17) (18) (19) (20) 1: Data Table Physical Units Transferred-In Direct Conversion (Car Seats) Costs Materials Costs Work in process, October 1a 8,100 $2,876,000 $0 $914,700 Transferred in during October 2017 ? Completed during October 2017 30,300 Work in process, October 31b 4,300 Total costs added during October 2017 $9,248,500 $11,301,900 $4,614,760 aDegree of completion: transferred-in costs, ?%; direct materials, ?%; conversioncosts, 80%. bDegree of completion: transferred-in costs, ?%; direct materials, ?%; conversion costs, 70%. 2: Requirements 1. What are 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 journal entries for October transfers from the assembly department to the testing department and from the testing department to Finished Goods.

Tomlinson Company manufactures car seats in its Houston plant. Each car seat passes through the assembly department and the 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. Tomlinson Company uses the FIFO method of process costing. Data for the testing department for October 2017 are as follows: Read the requirements2. Requirement 1. What are 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? Transferred-in costs Direct materials (a) Beginning work-in-process inventory (1) (2) (b) Ending work-in-process inventory (3) (4) Requirement 2. For each cost category, compute equivalent units in the testing department. Show physical units in the first column of your schedule. (For amounts with a 0 balance, make sure to enter "0" in the appropriate cell.) Equivalent Units Transferred-In Direct Conversion Physical Units Costs Materials Costs Work in process, beginning Transferred-in during the current period To account for Completed and transferred out during the current period: From beginning work in process Started and completed Work in process, ending Accounted for The equivalent of units of work done in current Requirement 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. Begin by summarizing the total costs to account for. (For amounts with a 0 balance, make sure to enter "0" in the appropriate cell.) Total Transferred-In Direct Conversion Production Costs Costs Materials Costs (5) (6) Total costs to account for Calculate the cost per equivalent unit for transferred-in costs, direct materials, and conversion costs. (Round the cost per equivalent unit amounts to four decimal places.) Transferred-In Direct Conversion Costs Materials Costs (7) Divide by (8) Cost per equivalent unit Assign total costs to units completed (and transferred out) and to units in ending work in process. Begin by calculating the total from the beginning inventory, then calculate the total costs accounted for. (For amounts with a 0 balance, make sure to enter "0" in the appropriate cell. Round your answers to the nearest whole dollar.) Total Transferred-In Direct Conversion Production Costs Costs Materials Costs Completed and transferred out: (9) (10) Total from beginning inventory (11) Total costs of units completed and transferred out (12) Total costs accounted for Requirement 4. Prepare journal entries for October transfers from the assembly department to the testing department and from the testing department to Finished Goods. (Record debits first, then credits. Exclude explanations from any journal entries.) Begin by recording the transfer from the assembly department to the testing department. Journal Entry Date Accounts Debit Credit (13) (14) (15) (16) Now record the transfer from the testing department to Finished Goods. Journal Entry Date Accounts Debit Credit (17) (18) (19) (20) 1: Data Table Physical Units Transferred-In Direct Conversion (Car Seats) Costs Materials Costs Work in process, October 1a 8,100 $2,876,000 $0 $914,700 Transferred in during October 2017 ? Completed during October 2017 30,300 Work in process, October 31b 4,300 Total costs added during October 2017 $9,248,500 $11,301,900 $4,614,760 aDegree of completion: transferred-in costs, ?%; direct materials, ?%; conversioncosts, 80%. bDegree of completion: transferred-in costs, ?%; direct materials, ?%; conversion costs, 70%. 2: Requirements 1. What are 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 journal entries for October transfers from the assembly department to the testing department and from the testing department to Finished Goods.

FINANCIAL ACCOUNTING

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Chapter1: Financial Statements And Business Decisions

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Tomlinson Company manufactures car seats in its Houston

plant. Each car seat passes through the assembly department and the 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. Tomlinson Company uses the FIFO method of process costing. Data for the testing department for October 2017 are as follows:

Read the requirements2.

Requirement 1. What are 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?

		Transferred-in costs	Direct materials
(a)	Beginning work-in-process inventory	(1)	(2)
(b)	Ending work-in-process inventory	(3)	(4)

Requirement 2. For each cost category, compute equivalent units in the testing department. Show physical units in the first column of your schedule. (For amounts with a 0 balance, make sure to enter "0" in the appropriate cell.)

		Equivalent Units
		Transferred-In	Direct	Conversion
	Physical Units	Costs	Materials	Costs
Work in process, beginning
Transferred-in during the current period
To account for
Completed and transferred out during the current period:
From beginning work in process
Started and completed
Work in process, ending
Accounted for
The equivalent of units of work done in current

Requirement 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.

Begin by summarizing the total costs to account for. (For amounts with a 0 balance, make sure to enter "0" in the appropriate cell.)

	Total	Transferred-In	Direct	Conversion
	Production Costs	Costs	Materials	Costs
(5)
(6)
Total costs to account for

Calculate the cost per equivalent unit for transferred-in costs, direct materials, and conversion costs. (Round the cost per equivalent unit amounts to four decimal places.)

		Transferred-In	Direct	Conversion
		Costs	Materials	Costs
(7)
Divide by	(8)
Cost per equivalent unit

Assign total costs to units completed (and transferred out) and to units in ending work in process.

Begin by calculating the total from the beginning inventory, then calculate the total costs accounted for. (For amounts with a 0 balance, make sure to enter "0" in the appropriate cell. Round your answers to the nearest whole dollar.)

	Total	Transferred-In	Direct	Conversion
	Production Costs	Costs	Materials	Costs
Completed and transferred out:
(9)
(10)
Total from beginning inventory

(11)
Total costs of units completed and transferred out
(12)
Total costs accounted for

Requirement 4. Prepare journal entries for October transfers from the assembly department to the testing department and from the testing department to Finished Goods. (Record debits first, then credits. Exclude explanations from any journal entries.)

Begin by recording the transfer from the assembly department to the testing department.

Journal Entry
Date	Accounts	Debit	Credit
		(13)
		(14)
		(15)
		(16)

Now record the transfer from the testing department to Finished Goods.

Journal Entry
Date	Accounts	Debit	Credit
		(17)
		(18)
		(19)
		(20)

1: Data Table

	Physical Units	Transferred-In	Direct	Conversion
	(Car Seats)	Costs	Materials	Costs

Work in process, October 1a	8,100	$2,876,000	$0	$914,700
Transferred in during October 2017	?
Completed during October 2017	30,300
Work in process, October 31b	4,300
Total costs added during October 2017		$9,248,500	$11,301,900	$4,614,760

aDegree

of completion: transferred-in costs, ?%; direct materials, ?%; conversioncosts, 80%.

bDegree of completion: transferred-in costs, ?%; direct materials, ?%; conversion costs, 70%.

2: Requirements

1.	What are 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 journal entries for October transfers from the assembly department to the testing department and from the testing department to Finished Goods.

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