Return to the Fermenting Department data for Gaspereau Vineyard in E5-31A.
Litres:
Beginning work in process inventory .......................................... 2,000 litres
Started production...................................................................... 6,000 litres
Completed and transferred out to Packaging in March............... 6,550 litres
Ending work in process inventory (80% of the way through
the fermenting process)........................................................... 1,450 litres
Costs:
Beginning work in process inventory($2,800 of direct materials
and $2,855 of conversion cost)............................................... $ 5,655
Costs added during March:
Direct materials .......................................................................... 8,800
Direct labour .............................................................................. 1,600
Manufacturing overhead............................................................. 2,484
Total costs added during March...................................................... $12,884
Requirements
1. Present the journal entries to record the use of direct materials and direct labour and the allocation of manufacturing overhead to the Fermenting Department. Also, give the journal entry to record the cost of the litres 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?