$17-31$ Weighted$-$average method. Larsen Company manufactures car seats in its San Antonio 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 Larsen 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.

Larsen Company uses the weighted$-$average method of process costing. Data for the assembly depart$-$

ment for October $2014$ are as follows:

${?}^{\text{a}\text{D}\text{e}\text{g}\text{r}\text{e}\text{e}of\text{c}\text{o}\text{m}\text{p}\text{l}\text{e}\text{t}\text{i}\text{o}\text{n}\text{:}}$ direct materials,? $\%$; conversion costs, $60\%.$

begree of completion: direct materials,? $\%$; conversion costs, $70\%.$

$1)$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 units calculation?

$3)$For each cost category, summarize total assembly department costs for October $2014$ and calculate

the cost per equivalent unit.

$4)$Assign costs to units completed and transferred out and to units in ending work in process.

Please answer all $4.$