Data Table Gallons 800 gallons 9,200 gallons 6,800 gallons 3,200 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 $ 1,955 180 170 10,545 742 3,588 Total costs added during March $ $ 14,875 Total Costs $ Jackson Winery Production Cost Report - Fermenting Department (Partial) Month Ended March 31 Direct Conversion COSTS Materials Costs Costs to account for: Beginning work-in-process 1,955 $ 350 $ Costs added during the period 10,545 4,330 Total costs to account for 12,500 $ 4,680 $ Divided by: Total equivalent units of production 10,000 9,360 Cost per equivalent unit $ 1.25 $ 0.50 Costs accounted for: Completed and transferred out 8,500 $ 3,400 $ Ending work-in-process 4,000 1,280 Total costs accounted for $ 12,500 $ 4,680 $ 2,305 14,875 17,180 11,900 5,280 17,180 Print Done 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." Work-in-Process Inventory-Fermenting Beg Bal 2,305 Requirement 3. What is the average cost per gallon transferred out of the Formenting Department into the Packaging Department? Why would Jackso managers want to know this cost? (Round your answer to the nearest cont.) The average cost per gallon transferred out of Fermenting is per gallon Why would Jackson Winery's managers want to know this cost? A. Managers use the cost per gallon for external financial reporting-specifically to calculate the cost of Goods Sold on the Income Statement B. Managers would compare the average cost per gallon against their budgeted costs to determine whether the costs of the blending process rema OC Managers use the cost per gallon for external financial reporting-specifically to calculate the ending inventory balances on the Balance Sheet OD. All of the above are reasons why management would be interested in this cost per unit for gallons completed and transferred out to Finished Goods Inventory