PrestonCompany manufactures car seats in its Hartfordplant. Each car seat passes through the assembly department and the testing department. This problem focuses on the assembly department. The process-costing system atPrestonCompany has a single direct-cost category (direct materials) and a single indirect-cost category (conversion costs). Direct materials are added at the beginning of the process. Conversion costs are added evenly during the process. When the assembly department finishes work on each car seat, it is immediately transferred to testing. PrestonCompany uses the weighted-average method of process costing. Data for the assembly department for October2014are as follows:Physical UnitsDirectConversion(Car Seats)MaterialsCostsWork in process, October 1 Superscript aOctober 1a4,500$1,102,500$475,875Started during October 201420,500Completed during October 201422,500Work in process, October 31 Superscript bOctober 31b2,500Total costs added during October 2014$3,997,500$$2,059,125Superscrip t aaDegreeof completion: direct materials, ?%; conversion costs,60%.Superscript bbDegreeof completion: direct materials, ?%; conversion costs,75%.1.For each cost category, compute equivalent units in the assembly department. Show physical units in the first column of your schedule.2.What issues should the manager focus on when reviewing the equivalent units calculation?3.For each cost category, summarize total assembly department costs for October20142014and calculate the cost per equivalent unit.4.Assign costs to units completed and transferred out and to units in ending work in process.