AC211 Management Accounting - Assessment 2 QUESTION 4 Weighted-average method Process Costing (30 marks) Comfy Lid manufactures car seats. Each car seat passes through the assembly department and the testing department. This problem focuses on the assembly department. The process-costing system at Comfy Ltd 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 Comfy Ltd uses the weighted-average method of process costing. Data for the assembly department for October 2018 are as follows: Physical units (car seats) Direct materials Conversion costs Work-in-process, October 12 4 000 $1 248 000 $241 650 Started during October 2018 22 500 Completed during October 2018 26 000 Work-in-process, 31 Octoberb 500 Total costs added during October 2018 $4 635 000 $2 575 125 *Degree of completion: direct materials, 100%; conversion costs, 45%. " Degree of completion: direct materials, 100%; conversion costs, 65%. Required 1. For each cost category, calculate 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 unit's calculation? 3. For each cost category, summarise total assembly department costs for October 2018 and calculate the cost per equivalent unit. 4. Assign costs to units completed and transferred out and to units in ending work-in-process