- - X Data table Reference Gallons 100 gallons 9,900 gallons 6,800 gallons Wilson Winery Production Cost Report - Fermenting Department (Partial) Month Ended March 31 Direct Conversion Beginning Work-in-Process Inventory Started in production Completed and transferred out to Packaging in March Ending Work-in-Process Inventory (80% of the way through the fermenting process) Costs Total COSTS Materials Costs Costs 3,200 gallons $ Beginning Work-in-Process Inventory Direct materials 672 $ 9,828 Costs to account for: Beginning work-in-process Costs added during the period Total costs to account for Divided by: Total equivalent units of production 400 $ 8,024 1,072 17.852 $ 672 $ 18.924 180 10.500 $ 10,000 8,424 $ 9,360 220 Direct labor Manufacturing overhead allocated Costs added during March: Direct materials $ 1.05 $ 0.90 9,828 Direct labor Cost per equivalent unit Costs accounted for: Completed and transferred out Ending work-in-process Total costs accounted for 4.924 3.100 $ 7,140 $ 3,360 6,120 $ 2,304 13,260 5,664 Manufacturing overhead allocated 17,852 $ 10,500 $ 18,924 Total costs added during March 8,424 $ Print Done Print Done Vilson Winery in Pleasant Valley, New York, has two departments. Fermenting and Packaging. Direct materials are added at the beginning of the femmenting 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.) Wilson Winery completed the following production cost report for ils 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 Read the requirements Requirement 1. Prepare the joumal entries to record the assignment of direct materials and direct labor and the allocation of manufacturing overhead to the Formenting Department. Assume labor costs are accrued and not yet paid Also prepare the journal entry to record the cost of the galons 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 joumal entre Accounts Debit Credit Date Mar. 31 Also prepare the journal entry to record the cost of the gallons completed and transferred out to the Packaging Department Date Accounts Debit Credit Mar 31 Requirement 2. Post the journal entries to the Work in Process Inventory --Fermenting Taccount. What is the ending balance? Post the entries using the appropriate descriptions as posting references. Denote the ending balance as "Bal" Work-in-Process Inventory-Fermenting Beg Bal 1,072 Requirement 3. What is the average cost per gallon transferred out of the Fermenting Department into the Packaging Department? Why would Wison Winery's managers want to know this cost? (Round your answer to the nearest cent.) The average cost per gallon transferred out of Fermenting is per gallon Why would Wilson Winery's managers want to know this cost? O A. Managers use the cost per gallon for extemal financial reporting-specifically to calculate the cost of Goods Sold on the Income Statement OB. Managers would compare the average cost per gallon against their budgeted costs to determine whether the costs of the blending process remain under control. If budgeted costs are higher than the actual average cost per gallon, then the managers have done a good job controlling costs. In contrast, if the budgeted costs are lower than the actual average cost per gallon, managers will investigate the reason for the higher-than-expected costs in an effort to regain control over costs. OC. Managers use the cost per galon for external financial reporting-specifically to calculate the ending inventory balances on the Balance Sheet OD. All of the above are reasons why management would be interested in this cost per unit for gallons completed and transferred out to Finished Goods Inventory - - X Data table Reference Gallons 100 gallons 9,900 gallons 6,800 gallons Wilson Winery Production Cost Report - Fermenting Department (Partial) Month Ended March 31 Direct Conversion Beginning Work-in-Process Inventory Started in production Completed and transferred out to Packaging in March Ending Work-in-Process Inventory (80% of the way through the fermenting process) Costs Total COSTS Materials Costs Costs 3,200 gallons $ Beginning Work-in-Process Inventory Direct materials 672 $ 9,828 Costs to account for: Beginning work-in-process Costs added during the period Total costs to account for Divided by: Total equivalent units of production 400 $ 8,024 1,072 17.852 $ 672 $ 18.924 180 10.500 $ 10,000 8,424 $ 9,360 220 Direct labor Manufacturing overhead allocated Costs added during March: Direct materials $ 1.05 $ 0.90 9,828 Direct labor Cost per equivalent unit Costs accounted for: Completed and transferred out Ending work-in-process Total costs accounted for 4.924 3.100 $ 7,140 $ 3,360 6,120 $ 2,304 13,260 5,664 Manufacturing overhead allocated 17,852 $ 10,500 $ 18,924 Total costs added during March 8,424 $ Print Done Print Done Vilson Winery in Pleasant Valley, New York, has two departments. Fermenting and Packaging. Direct materials are added at the beginning of the femmenting 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.) Wilson Winery completed the following production cost report for ils 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 Read the requirements Requirement 1. Prepare the joumal entries to record the assignment of direct materials and direct labor and the allocation of manufacturing overhead to the Formenting Department. Assume labor costs are accrued and not yet paid Also prepare the journal entry to record the cost of the galons 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 joumal entre Accounts Debit Credit Date Mar. 31 Also prepare the journal entry to record the cost of the gallons completed and transferred out to the Packaging Department Date Accounts Debit Credit Mar 31 Requirement 2. Post the journal entries to the Work in Process Inventory --Fermenting Taccount. What is the ending balance? Post the entries using the appropriate descriptions as posting references. Denote the ending balance as "Bal" Work-in-Process Inventory-Fermenting Beg Bal 1,072 Requirement 3. What is the average cost per gallon transferred out of the Fermenting Department into the Packaging Department? Why would Wison Winery's managers want to know this cost? (Round your answer to the nearest cent.) The average cost per gallon transferred out of Fermenting is per gallon Why would Wilson Winery's managers want to know this cost? O A. Managers use the cost per gallon for extemal financial reporting-specifically to calculate the cost of Goods Sold on the Income Statement OB. Managers would compare the average cost per gallon against their budgeted costs to determine whether the costs of the blending process remain under control. If budgeted costs are higher than the actual average cost per gallon, then the managers have done a good job controlling costs. In contrast, if the budgeted costs are lower than the actual average cost per gallon, managers will investigate the reason for the higher-than-expected costs in an effort to regain control over costs. OC. Managers use the cost per galon for external financial reporting-specifically to calculate the ending inventory balances on the Balance Sheet OD. All of the above are reasons why management would be interested in this cost per unit for gallons completed and transferred out to Finished Goods Inventory