Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Bank Strategy, Governance And Ratings

Authors: P. Molyneux

3rd Edition

0230313345, 9780230313347

More Books

Students also viewed these Accounting questions

Question

Describe recruitment and selection for international operations.

Answered: 1 week ago