KEY FIGURES	USE THE PROCESS COST PROBLEM TAB TO ACCESS THE DATA SET FOR THIS HOMEWORK ASSIGNMENT.
	USE CELL REFERENCING TO INPUT KEY FIGURES ON THIS SHEET. INPUT THE SET OF THREE JOURNAL ENTRIES ON THIS SHEET TOO.
Equivalent units (EUs)--Materials
Equivalent units (Eus)--Conversion
Total Materials costs for the period
Total Conversion costs for the period
Cost per EU--Materials
Cost per EU--Conversion
Costs assigned to ending WIP
Costs assigned to completed units for the period
Set of journal entries
DR
CR
1. To record the Direct Materials purchased & used
for production during October
DR
CR
2. To record conversion costs incurred for production
during October
DR
CR
3. To record the cost of goods completed & transferred
out to the Testing Department during October

WEIGHTED-AVERAGE METHOD

DATA SET

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 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 department for October 2022 are as follows:

Physical Units (Car Seats)

Direct Materials

Conversion Costs

Work-in-process, October 1 (a)

5,000

$1,250,000

$402,750

Started during October

20,000

Completed during October

22,500

Work-in-process, October 31 *b

2,500

Total costs added during October

$4,500,000

$2,337,500

*a Degree of completion: direct materials,?%; conversion costs, 60%.

*b Degree of completion: direct materials,?%; conversion costs, 70%.

REQUIREMENTS:

Prepare a production cost report below.

1. For each cost category, show the number of physical units. Compute equivalent units for materials and for conversion in the assembly department.

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

3. Assign costs to units completed and transferred out and to units in ending work in process.

4. Prepare a set of summarized journal entries for all October 2022 transactions affecting Work in ProcessAssembly.

Set-up a T-accounting for WIP--Assembly and post your entries to it.