Winer House manufactures a fine wine in two departments, Fermenting and Bottling.

In the Fermenting Department, grapes are aged in casks for a period of 30 days. In the Bottling Department, the wine is bottled and then sent to the finished goods warehouse.

Labor and overhead are incurred uniformly through both processes. Materials are entered at the beginning of both processes. Cost and production data for the Fermenting Department for December 2012 are presented below:

Requirements 

1. Compute the equivalent units of production. 

2. Determine the unit production costs. 

3. Determine the costs to be assigned to units transferred out and ending Work-in-

Process.

Transcribed Image Text:

Cost data Beginning Work-in-Process inventory Materials Conversion costs Total costs Production data Beginning Work-in-Process (gallons) Gallons started into production Ending Work-in-Process (gallons) $ 37,000 ($30,000 of materials cost) 390,000 121,000 $ 548,000 95,000 5,000 (40%) 65,000 8,000 (25%)