Shelton Winery in San Jose, California, 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). Conversion costs are added evenly throughout each process. Data from the month of March for the Fermenting Department are as follows: (Click the icon to view the data from March.) Read the requirements Requirement 1. Fill in the time line for the Fermenting Department. Direct materials (grapes) added Start 80% Complete 100% Complete Transferred out to Direct materials (grapes) added Packaging 6,540 gallons completed and transferred out 1,100 gallons incompleteData table Gallons: Beginning work in process inventory Started production __________________________________ Completed and transferred out to Packaging in March ..... Ending work in process inventory (80% of the way through the fermenting process) ................................. Costs: Beginning work in process inventory {$2300 ofdirect materials $ and $3333 of conversion cost} Costs added during March: Direct materials ............................... $ Direct labor .................................. Manufacturing overhead Total costs added during March _____________________________ 2:500 gallons 5:140 gallons 5:540 gallons 1:100 gallons 5:633 1032 800 2145 9:977 Requirements 1. Fill in the time line for the Fermenting Department. 2. Summarize the flow of physical units and compute the total equivalent units. 3. Summarize total costs to account for and compute the cost per equivalent unit for direct materials and conversion costs. 4. Assign total costs to units (gallons): a. Completed and transferred out to the Packaging Department b. In the Fermenting Department ending work in process inventory 5. What is the average cost per gallon transferred out of Fermenting into Packaging? Why would the company's managers want to know this cost?Cost per Equivalent Unit Month Ended March 31 Direct Conversion Materials Costs Total Beginning work in process Total costs to account for Divided by: Total equivalent units Cost per equivalent unit Requirement 4. Assign total costs to units (gallons) (a) completed and transferred out to the Packaging Department and (b) in the Fermenting Department's ending work in process inventory. (Enter quantities first, then the cost per equivalent unit amounts in the same order as calculated in the preceding step. Enter your answers to the nearest cent.)Month Ended March 31 Assigning Costs Direct Conversion Materials Costs Total a. Completed and transferred out: b. Ending work in process: Total costs accounted forRequirement 5. What is the average cost per gallon transferred out of Fermenting into Packaging? Why would the company's managers want to know this cost? First, identify the labels to compute the average cost per gallon transferred out, then compute the average cost per unit. (Abbreviation used: Avg. = Average. Enter your answer to two decimal places.) Avg. cost per gallon Why would Shelton's managers want to know this cost? Managers will want to know this cost to compare it to their They may also use the cost information when