Preston Company manufactures car seats in its Denver plant E

Preston Company manufactures car seats in its Denver plant. Each car seat passes through the assembly department and testing department. This problem focuses on the testing department. Direct materials are added when he testing department process 90% complete Conversion costs are added evenly during the testing department\'s process. As workin assembly s completed, each unit s immediately transferred o testing. As each unit is completed in testing, it is immediately transferred to Finished Goods. Preston Company uses the weighted-average method of process costing. Data for the testing department for October 2017 are as follows: ?(Click the icon to view the testing department data.) Read the requirements. To account for Completed and transferred out during 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 equivalent unit, and assign costs to units completed (and transferred out) and to units in ending 31,800 27,800 4,000 31,800 27,800 27,800 27,800 4,000 2,200 31,800 27,800 30,000 work in process. Begin by summarizing the total costs to account for. (For amounts with a 0 balance, make sure to enter \"O\" in the appropriate cell.) Total Transferred-in Direct Conversion Production Costs Costs Materials Costs Work in process, beginning Costs added in current period Total costs to account for $ 2,934,000 S 8,259,600 10,369,400 4,147,260 $ 10,369,400

Solution

Solution 1:

Percentage of completion for transferred in cost in beginning WIP = 100%

Percentage of completion for material in beginning WIP = 0%

Percentage of completion for transferred in cost in Ending WIP = 100%

Percentage of completion for material in Ending WIP = 0%

Solution 2:

Solution 3:

Solution 4:

Computation of Equivalent unit of Production - Testing Department
Particulars	Physical Units	Transferred in cost	Material	Conversion
Units to be accounted for:
Beginning WIP Inventory	7800
Units started this period (27800 + 4000 - 7800)	24000
Total unit to be accounted for	31800
Unit completed & Transferred out	27800	27800	27800	27800
Closing WIP	4000
Transferred in cost (100%)		4000
Material (0%)			0
Conversion (55%)				2200
Equivalent units of production	31800	31800	27800	30000