Computing Eur, assigning costs, with beginning WIP, no costs 30-23 Computi Process Costing 1113 transferred in Shea Winery in Learning Objectives 2,3 Winery in Pleasant Valley, New York, has two departments Fermenting and Package ing Direct materials are added at the bevinning of the e) and at the end of the packaging process (bottles). Conversion costs are added ble throughout each process. The company uses the weighted average method. the month of March for the Fermentine Department are as follows: 1. EUP for CC 8.860 Data from the moon 500 gallons 8,600 gallons 1.200 gallons Gallons Beginning Work-in-Process Inventory Started in production Completed and transferred out to Packaging in March Ending Work-in-Process Inventory (80% of the way through the fermenting process) 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 $ 540 195 210 9,288 3,305 3,378 $ 15,971 Requirements 1. Compute the Fermenting Department's equivalent units of production for direct materials and for conversion costs. 2. Compute the total costs of the units (gallons) a completed and transferred out to the Packaging Department b. in the Fermenting Department ending Work-in-Process Inventory, Note: Exercise E20-23 must be completed before attempting Exercise E20-24. Learning Objectives 5,6 4 Preparing journal entries, posting to T-accounts, making decisions Refer to the data and your answers from Exercise E20-23. 2. WIP Balance 52,064 Requirements 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 record the cost of the gallons completed and transferred out to the Packaging Department. 1. What is the aver st the journal entries to the Work-in-Process Inventory --Fermenting T-account. What is the ending balance at is the average cost per gallon transferred out of the Fermenting Depart ant into the Pac e Department? Why would Shea Winery'managers want to know this cost