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E6-48B Complete five-step procedure in first department (Learning Objective 3) Petite Riviere Vineyard in Nova Scotia has two departments Fermenting and Packaging Direct materials are

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E6-48B Complete five-step procedure in first department (Learning Objective 3) Petite Riviere Vineyard in Nova Scotia has two departments Fermenting and Packaging 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: Litres: Beginning work in process inventory 2.000 litres Started production 6,000 litres Completed and transferred out to Packaging in March 6,500 Stres Ending work in process inventory (80% of the way through the fermenting process) 1,500 litres Costs: $5.900 Beginning work in process inventory ($2,900 of direct materials and $3,000 of conversion cost) Costs added during March Direct materials 10,300 Direct labour 2,000 35 Manufacturing overhead 4.100 Total costs added during March $16.400 Requirements 1. Draw a timeline for the Fermenting Department similar to Exhibit 6-6. 2. Summarize the flow of physical units and compute the total equivalent units using the weighted average method. 3. Summarize total costs to account for and compute the cost per equivalent unit for direct materials and conversion costs. 4. Assign total costs to units (litres): a. Completed and transferred out to the Packaging Department b. In the Fermenting Department ending work in process inventory 5. What is the average cost per litre transferred out of fermenting into packaging? Why would Petite Rivire's managers want to know this cost

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