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& P17-36 (similar to) EQuestion Help Preston Company manufactures car seats in its Atlanta plant. Each car seat passes through the assembly department and the testing department. This problem focuses on the assembly department Data for the assembly department for October 2017 are as follows: (Click the icon to view the assembly department data) (Click the icon for Preston's process costing system information.) Read the tecuirements Requirement 1. For each cost category compute equivalent units in the assembly department Show physical units in the frst olumn of your schedule Equivalent Units Physical Direct Conversion Units Materials Costs Flow of Production 5,500 18,500 24,000 Wark in process beginning Started during curent period To account for Completed and transferred out during current period 21,500 21,500 Work in process ending Accounted for Work done to date Requirement 2. What issues should the manager focus on when reviewing the equivalent-unit calculations? To show better performance, a department superviser might report a higher degree of completion resulting in understated cost per equivalent unit and overstated operating income. In other word estimates of degree of completion can help to smooth earnings from one period to the net To guard against the possiblity of bias, managers should ask supervisors specific questions about the process they followed. Top management should always emphasize obtaining the correct anawer, regardless of how it affects reported performance. This emphasis drives ethical actions throughout the organization Requirement 3. For each cost category summarize total assembly department costs for October 2017 and calculate the cost per equivalent unit. Begin by summarizing the total assembly department costs for October 2017 21,500 2500 2500 1,625 Tetal Production Costs Materials Costs Total costs to account for

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