Requirement 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. Assume labor costs are accrued and not yet paid. Also prepare the journal entry to record the cost of the gallons completed and transferred out to the Packaging Department. Begin with the summary journal entry to record the assignment of direct materials and direct labor and the allocation of manufacturing overhead to the Fermenting Department. (Prepare a single compound journal entry. Record debits first, then credits. Exclude explanations from any journal entries.) Date Accounts Debit Credit Mar. 31 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. Assume labor costs are accrued and not yet paid. 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 InventoryFermenting 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 Shea Winery's managers want to know this cost? Print Done Gallons Shea Winery Production Cost Report - Fermenting Department (Partial) Month Ended March 31 Direct Conversion Materials Costs Beginning Work-in-Process Inventory Started in production Completed and transferred out to Packaging in March Ending Work-in-Process Inventory (80% of the way through the fermenting process) 500 gallons 8,600 gallons 7,900 gallons 1,200 gallons Total Costs COSTS Costs to account for: Beginning work-in-process Costs 540 $ 9,288 405 $ 6,683 945 15,971 Beginning Work-in-Process Inventory: Costs added during the period Total costs to account for 16,916 Direct materials 9,828 $ 9,100 7,088 $ 8,860 Direct labor 540 195 210 Divided by: Total equivalent units of production | 1.08 $ 1.08 0.80 || Cost per equivalent unit Costs accounted for: Completed and transferred out Manufacturing overhead allocated Costs added during March: Direct materials Direct labor 8,532 $ 1,296 9,828 $ 14,852 2,064 6,320 $ 768 7,088 $ Ending work-in-process 9,288 3,305 3,378 | Manufacturing overhead allocated $ 16,916 Total costs accounted for $ 15,971 Total costs added during March