Question

Be Safe, Inc. manufactures car seatsin its Dallas plant. Each car seat passes through the Assembly Deptand the Testing Dept. This problem focuses on the Assembly Dept.the process-costing system at Be Safe, Inc. has a singledirect-cost category (direct materials) and a single indirect-costcategory (conversion costs). Direct materials are added at thebeginning of the process. Conversion costs are added evenly duringthe process. When the Assembly Dept finished work on each car seat,it is immediately transferred to Testing.

Be Safe, Inc. uses the FirstIn First Out Method of process costing.Data for the Assembly Dept for September 2014 is:

PhysicalUnits Direct Conversion

(CarSeats) Materials Costs

Work-in-process, Sep1* 5,000 $1,250,000 $402,750

Started during Sep2014 20,000

Completed during Sep 2014 22,500

Work-in-process Sep30** 2,500

Total costs added during

Oct2009 $4,500,000 $2,337,500

*Degree of completion: DM ?%; CC60%

**Degree of completion: DM ?%; CC70%

1.For each cost category; compute equivalent units in theAssembly Dept. Show

physical units in the first column of the schedule.

2. For each cost category, summarize total Assembly Dept costsfor Sep 2014 and

calculate the cost per equivalent unit.

3. Assign total costs to units completed and transferred out andto units in ending Work in Process

4. Prepare the journal entry to move costs from WIP-AssemblyDept to theWIP-

Testing Department.