Anderson Winery in Napa Valley, California, has two departments: Fermenting and packing. 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:

Beginning Work in Process Inventory

$-0-$ gallons

Started production

$8,000$ gallons

Completed and transferred out to Packing in March

$6,550$ gallons

Ending Work in Process Inventory

$1,450$ gallons

Costs:

Beginning Work in Process Inventory

$$0$

Costs added during March:

Direct materials

$$104,000$

Direct labour

$ $24,000$

Manufacturing overhead

$ $45,390$

Total costs added during March

$$173,390$

The units still in process are $80\%$ of the way through the fermenting process.

$-2-$

Required:

i$)$ Compute the equivalent units for direct materials and for conversion costs

ii$)$ Compute the total cost of the units $($gallons$)$

a$)$ Completed and transferred out to the Packing Department.

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

iii$)$ Post the journal entries to the Work in Process Inventory $$ Fermenting T$-$account. What is the ending balance?

iv$)$ Present the journal entries to record the assignment of direct materials and direct labour and the allocation of manufacturing overhead to the Fermenting Department. Also give the journal entry to record the cost of the gallons completed and transferred out to the Packaging Department