Smithson Winery in Hampton, New Hampshire, 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: E: (Click the icon to view the data from March.) Read the requirements. * Data Table i Requirements - - X 3,000 gallons 4,840 gallons 6,490 gallons 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 ($2,000 of direct 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? 1,350 gallons $ 5,615 Print Done materials and $3,615 of conversion cost) Costs added during March: Direct materials ...........$ Direct labor 8,192 1,050 2,148 Manufacturing overhead Total costs added during March. $ 11,390 Requirement 1. Fill in the time line for the Fermenting Department. Conversion costs added evenly throughout the process Start 80% Complete 100% Complete Direct materials (grapes) added Transferred out to Packaging 6,490 gallons completed and transferred out 1,350 gallons incomplete Requirement 2. Summarize the flow of physical units and compute the total equivalent units. Fermenting Department Equivalent Unit Computation Month Ended March 31 Equivalent Units Flow of Physical Units Direct Materials Conversion Costs Flow of Production Units to account for: Beginning work in process, March 1 3000 | Plus: Started in production during March 4840 7840 Total physical units to account for Units accounted for: Completed and transferred out 6490 6490 1350 6490 1350 Plus: Ending work in process, March 31 1350 7840 | Total physical units accounted for Total equivalent units 7840 7840 Requirement 3. Summarize total costs to account for and compute the cost per equivalent unit for direct materials and conversion costs. (Enter the cost per equivalent unit to the nearest cent.) Fermenting Department Cost per Equivalent Unit Month Ended March 31 Direct Conversion Materials Costs Total 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.) Fermenting Department Month Ended March 31 Assigning Costs Direct Materials Conversion Costs Total a. Completed and transferred out: b. Ending work in process: Total costs accounted for Requirement 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 ]=D Why would Smithson's managers want to know this cost? Managers will want to know this cost to compare it to their V. They may also use the cost information when