Gallons
	Beginning Work-in-Process Inventory	200	gallons
	Started in production	8,300	gallons
	Completed and transferred out to Packaging in March	7,800	gallons
	Ending Work-in-Process Inventory (80% of the way	700	gallons
	through the fermenting process)
	Costs
	Beginning Work-in-Process Inventory:
	Direct materials	$4,715
	Direct labor	210
	Manufacturing overhead allocated	200
	Costs added during March:
	Direct materials	4,550
	Direct labor	2,164
	Manufacturing overhead allocated	3,278
	Total costs added during March	$9,992

E20-24 (similar to) Question Help Paulson Winery in Pleasant Valley, New York, has two departments: Fermenting and Packaging. Direct maials Paulson Winery completed the following production cost report for its Fermenting Department for the month of are added at the beginning of the fermenting process (grapes) and at the end of the packaging process (bottles). March Data from the month of March for the Fermenting Department are as follows: (Click the icon to view the data from March.) (Click the icon to view the production cost report.) Conversion costs are added evenly throughout each process. The company uses the weighted-average method. Read the requirements Requirement 1. Prepare the jounal 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 Begin with the summary journal entry to record the assignment of direct materials and direct labor and the allocation of manufacturing overhead to the Fermenting Department. (Prepare a single compound journal entry. Record debits first, then credits. Exclude explanations from any journal entries.) Debit Credit Date Accounts Mar. 31 Choose from any list or enter any number in the input fields and then click Check Answer. Costs Materials Costs COSTS Costs to account for: 4,715 $ Beginning work-in-process 5,125 410 $ 4,550 9,992 5,442 Costs added during the period Total costs to account for 9,265 $ 5,852 $ 15,117 8,500 8,360 Divided by: Total equivalent units of production 1.09 $ 0.70 Cost per equivalent unit Costs accounted for 13,962 Completed and transferred out 8,502 $ 5,460 $ 392 1,155 763 Ending work-in-process 9,265 $ 5,852 $ 15,117 G Requirements 1 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 is the ending balance? Fermenting T-account. What 3. What is the average cost per gallon transferred out of the Fermenting Department into the Packaging Department? Why would Paulson Winery's managers want to know this cost? Print Done