Weighted-average method. Larsen Company manufactures car seats in its San Antonio plant.Each car seat passes through the assembly department and the testing department. This problemfocuses on the assembly department. The process-costing system at Larsen Company has a singledirect-cost category (direct materials) and a single indirect-cost category (conversion costs). Directmaterials are added at the beginning of the process. Conversion costs are added evenly during theprocess. When the assembly department finishes work on each car seat, it is immediately transferredto testing.
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