$1.$

Fill in the time line for the Fermenting Department.

$2.$

Summarize the flow of physical units and compute the total equivalent units.

$3.$

Summarize total costs to account for and compute the cost per equivalent unit for direct materials and conversion costs.

$4.$

Assign total costs to units$($gallons$)$:

a$.$ Completed and transferred out to the Packaging Department

b$.$ In the Fermenting Department ending work in process inventory

$5.$

What is the average cost per gallon transferred out of Fermenting into$$ Packaging? Why would the$$ company's managers want to know this$$ cost$?$

Gallons:

Beginning work in process inventory $2,100$ gallons

Started production $5,860$ gallons

Completed and transferred out to Packaging in March $6,560$ gallons

Ending work in process inventory $(80\%$ of the way through the fermenting process$)1,400$ gallons

Costs:

Beginning work in process inventory $($$$2,500$ of direct materials and $$3,715$ of conversion cost$)$ $$6,215$

Costs added during March:

Direct materials $$9,440$

Direct labor $600$

Manufacturing overhead $1,829$

Total costs added during March $$11,869$