3. Samson Winery in Pleasant Valley, N.Y, has two departments: Fermenting and Packaging. DM 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: Gallons: Beginning WIP inventory 0 gallon Started in production 9100 gallons Completed and transferred out to packaging 7900 gallons Ending WIP inventory (80% of the way through 1200 gallons The fermenting process) Costs Beginning WIP inventory Costs added during March: DM DL MO $ 0 9828 3500 3588 $ 16916 Total costs added during March Requirement: Compute the equivalent units of production for DM and for conversion costs. Ans: Completed units: units X = In process units: units X = Total EUP for direct materials = EUP + EUP for direct materials EUP for direct materials EUP = EUP Completed units: units X = In process units: units X = Total EUP for conversion costs EUP for conversion costs EUP for conversion costs EUP + EUP = EUP 4. Using data from problem 3 above, compute the total costs of the units (gallons) a) Completed and transferred out to the Packaging Department b) In the Fermenting Department ending WIP inventory Cost per EUP for direct materials Total direct materials costs Equivalent units of production for direct materials Cost per EUP for conversion costs = Direct Materials: == $ EUP $ per EUP Total conversion costs Equivalent units of production for conversion costs Completed EUP In Process EUP per EUP per EUP Total EUP $ per EUP Conversion Costs: Completed EUP x per EUP = In Process EUP per EUP = Total a. Completed and Transferred Out = Direct Materials + Conversion Costs + b. Work-in-Process Inventory = Direct Materials + Conversion Costs