Samson Winery in Pleasant Valley, New York, has two departments: Fermenting and Packaging. Direct materials are added at the beginning of the fermenting process (grapes) and at the end of the packaging process (bottles). Conversion costs are added evenly throughout each process. Data from the month of March for the Fermenting Department are as follows:

Requirements
1. Draw a timeline for the Fermenting Department.
2. Use the timeline to help you compute the equivalent units for direct materials and for conversion costs.
3. Compute the total costs of the units (gallons)
a. completed and transferred out to the Packaging Department.
b. in the Fermenting Department ending Work in processinventory.

Transcribed Image Text:

Gallons: Beginning work in process inventory Started production Completed and transferred out to Packaging in March Ending work in process inventory (80% of the way through fermenting process) 9,100 gallons 7,900 gallons 1,200 gallons Costs: Beginning work in process inventory Costs added during March: 0. Direct materials 9,828 Direct labor 3,500 Manufacturing overhead 3,588 Total costs added during March $16,916