Question

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). Conversion costs are added evenly throughout each process. The company uses the weighted average method. Data from the month of March for the Fermenting Department are as follows: (Click the icon to view the data from March.) Read the requirements. Requirement 1. Compute the Fermenting Department's equivalent units of production for direct materials and for conversion costs. Complete the partial production cost report below for the Fermenting Department showing the equivalent units of production for direct materials and for conversion costs. A Requirements Smithson Winery Production Cost Report - Fermenting Department (Partial) Month Ended March 31 Equivalent Units Physical Direct Conversion UNITS Units Materials Costs Units to account for: 1. Compute the Fermenting Department's equivalent units of production for direct materials and for conversion costs. 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. Total units to account for Units accounted for Print Print Dame Done Total units accounted for

Answer 1

1)

SMITHSON WINERY PRODUCTION COST REPORT
	Physical units	Equivalent unit
		Direct material	conversion cost
Units to account for
Beginning work in process	100
Started in to production	8400
Total units to account for	8500
Units accounted for
Completed and transferred out	7800	7800	7800
Ending work in process	700	700*100%=700	700*80%=560
Total units accounted for	8500	8500	8360

b)

	Material	Conversion
Beginning work in process	2035	150+170]=320
current period cost	9440	922+4610=5532
Total cost to account for	11475	5852
Equivalent unit of production	8500	8360
Cost per equivalent unit	11475/8500 =$1.35	5852/8360 =$ .70

	Material	Conversion	Total
completed and transferred out	7800*1.35 = 10530	7800*..7= 5460	15990
Ending work in process	700*1.35= 945	560*.7=392	1337