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Shea Winery has two departments: Fermenting and Packaging.Direct materials are added at theof the beginning of the Fermenting process (grapes) and at the end of

Shea Winery has two departments: Fermenting and Packaging.Direct materials are added at theof the beginning of the Fermenting process (grapes) and at the end of the packaging process (bottles). Conversion costs are added evenly throughout each process. The company uses the weighted-average method.Data from the month of March for the Fermenting Department are:

Gallons

Beginning work-in-process inventory500 gallons

Started in production8,600 gallons

Completed and transferred to the Packaging Department7,900 gallons

Ending work-in-process inventory (80% completed)1,200 gallons

Costs

Beginning work-in-process inventory:

Direct materials$540

Direct labor195

Manufacturing overhead allocated210

Costs added during March:

Direct materials9,288

Direct labor3.305

Manufacturing overhead allocated3,378

Total costs added during March$15,971

Required:

1.Compute the Fermenting Department's equivalent units of production for direct materials and for conversion costs

2.Compute the total costs of the units (gallons).

a.Completed and transferred out to the Packaging Department

b.In the Fermenting Department ending Work-in-Process Inventory

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