Question
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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