Berrian Company manufactures car seats in its Chicago plant. Each car seat passes through the assembly department and 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. Berrian Company uses the weighted-average method of process costing. Data for the testing department for October 2017

are asfollows:

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 costcategory, compute equivalent units in the testing department. Show physical units in the first column of your schedule. (For amounts with a 0balance, make sure to enter"0" in the appropriatecell.)

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

Work in process, ending

Accounted for

Equivalent units of work done to date

Requirement 3. For each cost category, summarize total testing department costs for October 2017, calculate the cost per equivalentunit, and assign costs to units completed(and transferredout) and to units in ending work in process.

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

Total

Transferred-in

Direct

Conversion

Production Costs

Costs

Materials

Costs

(5)

(6)

Total costs to account for

Calculate the cost per equivalent unit fortransferred-in costs, directmaterials, and conversion costs.

Transferred-in

Direct

Conversion

Costs

Materials

Costs

(7)

Divide by

(8)

Cost per equivalent unit

Assign total costs to units completed(and transferredout) and to units in ending work in process. (For amounts with a 0balance, make sure to enter"0" in the appropriatecell.)

Total

Transferred-in

Direct

Conversion

Production Costs

Costs

Materials

Costs

Assignment of costs:

Completed and transferred out

Work in process, ending

Total costs to account 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 debitsfirst, then credits. Exclude explanations from any journalentries.)

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

Journal Entry

Date

Accounts

Debit

Credit

(9)

(10)

(11)

(12)

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

Journal Entry

Date

Accounts

Debit

Credit

(13)

(14)

(15)

(16)

1: Data Table

Physical Units

Transferred-In

Direct

Conversion

(Car Seats)

Costs

Materials

Costs

Work inprocess, October1a

7,800

$2,935,000

$0

$802,740

Transferred in during October 2017

?

Completed during October 2017

27,800

Work inprocess, October31b

4,000

Total costs added during October 2017

$8,226,800

$10,147,000

$4,147,260

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

bDegree of completion: transferred-in costs, ?%; direct materials, ?%; conversion costs, 55%.

2: Requirements

1.

What is the percentage of completion for(a) transferred-in costs and direct materials in beginningwork-in-process inventory and(b) transferred-in costs and direct materials in endingwork-in-process inventory?

2.

For each costcategory, compute equivalent units in the testing department. Show physical units in the first column of your schedule.

3.

For each costcategory, summarize total testing department costs for October

2017,

calculate the cost per equivalentunit, and assign costs to units completed(and transferredout) 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.