Shea Winery in Pleasant Valley, New York, has two 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). Data from the month of March for the Fermenting Department are as follows: (Click the icon to view the data from March.) Shea Winery completed the following production cost report for its Fermenting Department for the month of 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. Requirement 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 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.) Date Mar. 31 Accounts Debit Credit K Shea Winery in Pleasant Valley, New York, has two 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). Data from the month of March for the Fermenting Department are as follows: (Click the icon to view the data from March.) Data Table: Shea Winery completed the follow report for its Fermenting Departm March: (Click the icon to view the pre Conversion costs are added ever process. The company uses the v method. Data table Gallons - X and Als Beginning Work-in-Process Inventory 500 gallons e allo d del Started in production 8,600 gallons Completed and transferred out to Packaging in March 7,900 gallons Ending Work-in-Process Inventory (80% of the way through the fermenting process) 1,200 gallons Costs Beginning Work-in-Process Inventory: Direct materials 540 Direct labor 195 Manufacturing overhead allocated 210 Costs added during March: Direct materials 9.288 Direct labor 3,305 Manufacturing overhead allocated 3,378 Total costs added during March 15,971 Reference Shea Winery Production Cost Report - Fermenting Department (Partial) Month Ended March 31 COSTS Direct Conversion Total Materials Costs Costs Costs to account for Beginning work-in-process 540 $ 405$ 945 Costs added during the period 9,288 6,683 15,971 Total costs to account for 9,828 $ 7,088 $ 16,916 Divided by: Total equivalent units of production 9,100 8,860 Cost per equivalent unit 1.08 $ 0.80 Costs accounted for Completed and transferred out Ending work-in-process Total costs accounted for 8,532 $ 6,320 $ 14,852 1,296 768 2,064 $ 9,828 $ 7,088 $ 16,916 - X