Question
shea winery in pleasant valley, new york, has 2 departments: fermenting and packaging. direct materials are added at the beginning of the fermenting process (grapes)
shea winery in pleasant valley, new york, has 2 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. the company uses the weighted-average method.data from the month of march for the fermentingdepartment are as follows: gallons : beginning work-in-process inventory 500 gallons. started in production 8600 gallons. completed and transfered out to packaging in march 7900 gallons. ending work-in-progress inventory (80% of the way through the fermenting process) 1200 gallons. costs: beginning work-in-progress inventory, direct materials $540, direct labor $195, manufacturing overhead allocated $210. 1. compute the fermenting departments 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 of the packaging department. b. in the fermenting department ending work-in-progress inventory.
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