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Problem 4 Baker Winery manufactures fine wine in two departments, Fermenting and Bottling. In the Fermenting Department, grapes are aged in casks for a period of 30 In the Bottling Department, the wine is bottled and then sent to the finished goods warehouse. Labor and overhead are incurred uniformly through both proces Materials are entered at the beginning of both processes. Cost and production data for the Fermenting Department for December 2002 are presented below: Cost data Beginning work in process inventory Materials Conversion costs Total costs $37,000 ($30,000 of materials cost) 390,000 155,000 $582,000 40% Production data Beginning work in process (gallons) Gallons started into production Ending work in process (gallons) 5,000 55,000 8,000 25% Instructions (a) Compute the equivalent units of production. (b) Determine the unit production costs. (c) Determine the costs to be assigned to units transferred out and ending work in process. 1 Equivalent units of production: Transferred out Work in process, March 31 Total Physical Units Value Value Value Equivalent Units Materials Value Value Value Conversion Costs Value Value Value . Value 2 Materials unit cost Conversion unit cost Total unit cost Value Value Value Value Value ? Costs assigned to work in process, March 31 Materials costs Conversion costs Total Value Value Value Value Value Value ? 3 Costs assigned to units completed and transferred out Value Value Value