Reference no: EM132998342

Shea Winery has two departments: Fermenting and Packaging. Direct materials are added at the of the beginning of the Fermenting process (grapes) and at the end of the packaging process (bottles). Conversion costs are added evenly throughout each process. The company uses the weighted-average method.

Data from the month of March for the Fermenting Department are:

Gallons
Beginning work-in-process inventory 500 gallons
Started in production 8,600 gallons
Completed and transferred to the Packaging Department 7,900 gallons
Ending work-in-process inventory (80% completed) 1,200 gallons

Costs
Beginning work-in-process inventory:
Direct materials $ 540
Direct labor 195
Manufacturing overhead allocated 210

Costs added during March:
Direct materials 9,288
Direct labor 3.305
Manufacturing overhead allocated 3,378
Total costs added during March $15,971

Required:

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

Problem 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