Samson 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:

Requirements

1. Compute the 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.

Transcribed Image Text:

Gallons Beginning Work-in-Process Inventory Started in production Completed and transferred out to Packaging in March Ending workin-Process Inventory (80% of the way through the fermenting process) o gallons 9,100 gallons 7900 gallons 1,200 gallons Costs Beginning Work-in-Process Inventory Costs added during March: 0 Direct materials Direct labor Manufacturing overhead 9,828 3,500 3,588 $16,916 Total costs added during March