Weighted-average method. Hoffman Company manufactures car seats in its Boise plant. Each car seat passes through the assembly department and the testing department. This problem focuses on the assembly department. The process-costing system at Hoffman 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 de- partment finishes work on each car seat, it is immediately transferred to testing. Hoffman Company uses the weighted-average method of process costing. Data for the assembly de- partment for October 2017 are as follows: Physical Units (Car Seats) Direct Materials Conversion Costs $ 241,650 Work in process, October 1° Started during October 2017 Completed during October 2017 Work in process, October 31b Total costs added during October 2017 4,000 $1,248,000 22,500 26,000 500 $4,635,000 $2,575,125 *Degree of completion: direct materials,?%; conversion costs, 45%. "Degree of completion: direct materials,?%; conversion costs, 65%.

Weighted-average method. Hoffman Company manufactures car seats in its Boise plant. Each car seat passes through the assembly department and the testing department. This problem focuses on the assembly department. The process-costing system at Hoffman 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 de- partment finishes work on each car seat, it is immediately transferred to testing. Hoffman Company uses the weighted-average method of process costing. Data for the assembly de- partment for October 2017 are as follows: Physical Units (Car Seats) Direct Materials Conversion Costs $ 241,650 Work in process, October 1° Started during October 2017 Completed during October 2017 Work in process, October 31b Total costs added during October 2017 4,000 $1,248,000 22,500 26,000 500 $4,635,000 $2,575,125 *Degree of completion: direct materials,?%; conversion costs, 45%. "Degree of completion: direct materials,?%; conversion costs, 65%.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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