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) $ 0 Costs Beginning WIP inventory Costs added during March: DM DL MO Total costs added during March 9828 3500 3588 $ 16916 Requirement: Compute the equivalent units of production for DM and for conversion costs. Ans: 2 Completed units: units In process units: units Total EUP for direct materials II !!! EUP for direct materials EUP for direct materials EUP + EUP = EUP = Completed units: units x In process units: units x Total EUP for conversion costs II 10 EUP for conversion costs EUP for conversion costs EUP + EUP = EUP