Question

Refer to the data and your answers from Exercise E18-21.
Gallons
Beginning Work-in-Process Inventory............ 0 gallons
Started in production................... 7,900 gallons
Completed and transferred out to Packaging in May........ 4,400 gallons
Ending Work-in-Process Inventory
(80% of the way through the blending 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 May.................. $ 15,307
Requirements
1. Prepare the journal entries to record the assignment of direct materials and direct labor and the allocation of manufacturing overhead to the Fermenting Department. Also prepare the journal entry to record the cost of the gallons completed and transferred out to the Packaging Department.
2. Post the journal entries to the Work-in-Process Inventory—Fermenting T-account.
What is the ending balance?
3. What is the average cost per gallon transferred out of the Fermenting Department
into the Packaging Department? Why would Anderson Winery’s managers want to
know this cost?


$1.99
Sales0
Views55
Comments0
  • CreatedJune 15, 2015
  • Files Included
Post your question
5000