C Requirement 1. Prepare the journal entries to record the assignment of direct materials and direct labor and the allocation of m out to the Packaging Department Begin with the summary journal entry to record the assignment of direct materials and direct labor and the allocation of manufae Date Mar 31 Accounts Debit Credit Also prepare the journal entry to record the cost of the gallons completed and transferred out to the Packaging Department Date: Mar 31 Accounts Debit Credit Requirement 2. Post the journal entries to the Work-in-Process Inventory-Fermenting T-account What is the ending balance Post the entries using the appropriate descriptions as posting references. Denote the ending balance as "Bal" Beg. Bal Work-in-Process Inventory-Fermenting 5,390 Requirement 3. What is the average cost per gallon transferred out of the Fermenting Department into the Packaging Departm Requirement 3. What is the average cost per gallon wanalenad out of the Funding Department into the Packaging Department? Why would The average cost per gallon transferred femini Why would Smithoon Winery's managers want to know this cost? the Balance She OA Managers use the cost per gallon for extomat financial reporting-specifically to calculate the ending ivory balances O. Managers une the cost per gallon for damal financial reporting-speclically to calculate the Cast of Goods field on the com OC Managers would compare the average cal per gallon paint their budgeted code to dete whether budgeted costs are lower than the actual average cost per gallon managers will investigat OD. All of the above are reasons why management would be interested in this cost per i Tw Data table Gallons Beginning Work-in-Process Inventory 700 gallons Started in production 8,000 gallons Completed and transferred out to Packaging in March 7,250 gallons Ending Work-in-Process Inventory (80% of the way through the fermenting process) 1,450 gallons Costs Beginning Work-in-Process Inventory! Direct materials Direct labor Manufacturing overhead allocated Costs added during March: Direct materials Direct labor Manufacturing overhead allocated Total costs added during March 69 $ 5,020 170 200 4,550 2,647 4,552 11,749 Reference COSTS Smithson Winery Production Cost Report - Fermenting Department (Partial) Month Ended March 31 Costs to account for Beginning work-in-process Costs added during the period Total costs to account for Divided by Total equivalent units of production Cost per equivalent unit Costs accounted for Completed and transferred out Ending work-in-process Total costs accounted for Direct Conversion Total Materials Costs Costs A 109 69 - X 5.020 S 370 $ 5,390 4,550 7.199 11.749 9,570 $ 7,569 $ 17.139 8.700 8.410 1.10 $ 0.90 7.975 $ 6,525 $ 14,500 1.595 1,044 2.639 9,570 $ 7.569 $ 17.139 Requirements 1. Prepare the journal entries to record the assignment of direct materials and direct labor and the allocation of manufacturing overhead to the Fermenting Department. Assume labor costs are accrued and not yet paid. Also prepare the journal entry to record the cost of the gallons completed and transferred out to the Packaging Department. 2. Post the journal entries to the Work-in-Process Inventory-Fermenting T-account. What is the ending balance? 3. What is the average cost per gallon transferred out of the Fermenting Department into the Packaging Department? Why would Smithson Winery's managers want to know this cost? - X