COMPREHENSIVE EXAMPLE $1$ WEIGHTED$-$AVERAGE PROCESS COSTING: CK Mondavi, a renowned wine producer,

uses process costing to allocate costs. The company grows grapes and after those grapes are harvested, processes

them until they become the eventual end product $($delicious wine!$).$ The company accounts for crushing the grapes,

fermenting the grapes, and aging the wine as one process.

For the month of May, the company reported the following information with respect to inventory in the CFA

$($Crushing$/$Fermenting$/$Aging$)$ Process account:

Units Direct Material Cost Conversion Cost

Beginning Inventory $200$ $$84,000$ $$81,120$

Units Started $1,800$

$2,000$

Units Completed $(1,600)$

Ending Inventory $400$

Current Manufacturing Costs $$810,000$ $$918,000$

Of the $400$ units remaining in inventory, they were $100\%$ complete with respect to direct materials and $60\%$

complete with respect to conversion costs. Using the weighted$-$average method, assign costs as units flow

through CK Mondavi$$s processing.