Transcribed Image Text
Kaeding Company manufactures car seats in its Hartford plant.Each car seat passes through the assembly department and thetesting department. This problem focuses on the assemblydepartment.Physical UnitsDirectConversion(Car Seats)MaterialsCostsWork in? process, October 15,400$ 1,344,600$ 337,190??Started during October 2017201721,000Completed during October 2017201724,500Work in? process, October 31 Superscript1,900Total costs added during October 20172017$4,305,000$2,567,430??Superscript aDegree of? completion: direct? materials, ?%;conversion? costs, 50?%.Superscript bDegree of? completion: direct? materials, ?%;conversion? costs, 70?%.Requirement 1. For each cost? category, computeequivalent units in the assembly department. Show physical units inthe first column of your schedule.Equivalent UnitsPhysicalDirectConversionFlow of ProductionUnitsMaterialsCostsWork in process beginningStarted during current periodTo account forCompleted and transferred out during current periodWork in process, endingAccounted forWork done to date1.For each cost? category, compute equivalent units in theassembly department. Show physical units in the first column ofyour schedule.2.What issues should the manager focus on when reviewing the?equivalent-unit calculations?3.For each cost? category, summarize total assembly departmentcosts for October20172017and calculate the cost per equivalent unit.4.Assign costs to units completed and transferred out and to unitsin ending work in process.