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
icon
Related questions
Question

For each cost category, summarize total assembly department costs for October 2017 and calculate the cost per equivalent unit.

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%.
Transcribed Image Text: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%.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 2 images

Blurred answer
Knowledge Booster
Cost Sheet
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education