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 Inventory-Fermenting 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 Smithson Winery's managers want to know this cost? Print Done i Data Table Gallons Beginning Work-in-Process Inventory 800 gallons Started in production 8,400 gallons 7,700 gallons Completed and transferred out to Packaging in March Ending Work-in-Process Inventory (80% of the way 1,500 gallons through the fermenting process) Costs Beginning Work-in-Process Inventory: Direct materials 392 Direct labor 200 Manufacturing overhead allocated 180 Costs added during March: Direct materials 9,360 Direct labor 1,372 3,588 Manufacturing overhead allocated 14,320 Total costs added during March Print Done Smithson 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). Data from the month of March for the Fermenting Department are as follows: Smithson Winery completed the following production cost report for its Fermenting Department for the month of March: (Click the icon to view the production cost report.) Conversion costs are added evenly throughout each process. The company uses the weighted-average method. EE(Click the icon to view the data from March.) Read the requirements. 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.) Credit Date Accounts Debit Work-in-Process Inventory-Fermenting 14,320 Mar. 31 Raw Materials Inventory 9,360 Manufacturing Overhead 3,588 Wages Payable 1,372 Also prepare the journal entry to record the cost of the gallons completed and transferred out to the Packaging Department. Date Accounts Debit Credit Work-in-Process Inventory-Packaging Work-in-Process Inventory-Fermenting 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 Inventory-Fermenting 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 Smithson Winery's managers want to know this cost? Print Done i Data Table Gallons Beginning Work-in-Process Inventory 800 gallons Started in production 8,400 gallons 7,700 gallons Completed and transferred out to Packaging in March Ending Work-in-Process Inventory (80% of the way 1,500 gallons through the fermenting process) Costs Beginning Work-in-Process Inventory: Direct materials 392 Direct labor 200 Manufacturing overhead allocated 180 Costs added during March: Direct materials 9,360 Direct labor 1,372 3,588 Manufacturing overhead allocated 14,320 Total costs added during March Print Done Smithson 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). Data from the month of March for the Fermenting Department are as follows: Smithson Winery completed the following production cost report for its Fermenting Department for the month of March: (Click the icon to view the production cost report.) Conversion costs are added evenly throughout each process. The company uses the weighted-average method. EE(Click the icon to view the data from March.) Read the requirements. 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.) Credit Date Accounts Debit Work-in-Process Inventory-Fermenting 14,320 Mar. 31 Raw Materials Inventory 9,360 Manufacturing Overhead 3,588 Wages Payable 1,372 Also prepare the journal entry to record the cost of the gallons completed and transferred out to the Packaging Department. Date Accounts Debit Credit Work-in-Process Inventory-Packaging Work-in-Process Inventory-Fermenting Mar. 31