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:

Gallons
	Beginning Work-in-Process Inventory	400 gallons
	Started in production	8,800 gallons
	Completed and transferred out to Packaging in March	7,700 gallons
	Ending Work-in-Process Inventory (80% of the way through the fermenting process)	1,500 gallons
	Costs
	Beginning Work-in-Process Inventory:
	Direct materials	$5,570
	Direct labor	200
	Manufacturing overhead allocated	230
	Costs added during March:
	Direct materials	4,550
	Direct labor	640
	Manufacturing overhead allocated	5,160
	Total costs added during March	$10,350

Winery completed the following production cost report for its Fermenting Department for the month of March:

Smithson Winery
Production Cost Report - Fermenting Department (Partial)
Month Ended March 31
	Direct	Conversion	Total
COSTS	Materials	Costs	Costs
Costs to account for:
Beginning work-in-process	$5,570	$430	$6,000
Costs added during the period	4,550	5,800	10,350
Total costs to account for	$10,120	$6,230	$16,350
Divided by: Total equivalent units of production	9,200	8,900
Cost per equivalent unit	$1.10	$0.70

Costs accounted for:
Completed and transferred out	$8,470	$5,390	$13,860
Ending work-in-process	1,650	840	2,490
Total costs accounted for	$10,120	$6,230	$16,350

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. (Record debits first, then credits. Exclude explanations from any journal entries.)

Begin with the journal entry to record the assignment of direct materials to the

Fermenting

Department. Do not record the assignment of direct labor or the allocation of manufacturing overhead with this entry. We will prepare those entries separately in the following steps.

Date

Accounts

Debit

Credit

Mar.

31