anderson winery in pleasant valley new york has two departments fermenting and packa 4136746

Anderson 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). Conversion costs are added evenly throughout each process. Data from the month of March for the Fermenting Department are as follows:

Gallons

Beginning Work-in-Process Inventory………………………………..0 gallons

Started in production……………………………………………..7,900 gallons

Completed and transferred out to Packaging in March…………..4,400 gallons

Ending Work-in-Process Inventory (80% of the way

through the fermenting process)………………………………….3,500 gallons

Costs

Beginning Work-in-Process Inventory……………………………………..$ 0

Costs added during March:

Direct materials…………………………………………………………..8,611

Direct labor………………………………………………………………2,196

Manufacturing overhead allocated………………………………………4,500

Total costs added during March………………………………………$ 15,307

Requirements

1. Compute the Fermenting Department’s equivalent units of production for direct materials and for conversion costs.

2. Compute the total costs of the units (gallons)

a. Completed and transferred out to the Packaging Department.

b. In the Fermenting Department ending Work-in-Process Inventory.

Anderson Winery in Pleasant Valley New York has two departments

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