Question

Homework: Chapter 18 Homework Save 8 of 8 (6 complete) > HW Score: 54.19%, 10.84 of 20 pts Score: 0 of 3 pts E18-24 (similar to) Question Help Samson Winery in Pleasant Valley, New York, has two departments: Formenting 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: (Click the icon to view the data from March.) Samson Winery completed the following production cost report for its Formenting 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 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 Formenting Department (Prepare a single compound journal entry. Record debits first, then credits. Exclude explanations from any journal entries.) Date Accounts Debit Credit Mar. 31 Choose from any list or enter any number in the input fields and then click Check Answer parts + remaining Clear All Check Answer

Answer 1

Answer is given below

Format may be slightly different but answer remains the same

Credit Debit $4,550 Date Accounts March 31 Work in process - Fermenting Department To Raw Material inventory (To record issue of material to work in process) $4,550 Debit Credit $7021 Date Accounts March 31 Work in process - Fermenting Department To Wages payable (To record direct labor incurred on work in process) $702 Credit Debit $3,588 Date Accounts March 31 Work in process - Fermenting Department To Manufacturing overhead (To record overhead applied to production) $3,588 Credit Debit $10,880 Date Accounts March 31 Work in process - Packaging Department To Work in process - Fermenting Department (To record transfer of completed units to Packaging dept) $10,880

Work in process Inventory - Fermenting Department Date Particulars Amount Date Particulars March 1 Opening balance $6,840 March 31 Transfer to Packing Dept Direct Material $4,550 March 31 Closing balance Direct labor $702 Overheads $3,588 $15,680 Amount $10,880 $4,800 $15,680 Ending balance is $4,800 3 $1.60 Average cost of per gallon transferred to Packing department (Direct material + Direct labor + Manufacturing overheads) Samson Winery's managers would like to know the average cost to calculate cost of inventory transferred out to Packaging department and value the closing inventory of WIP in Fermenting Department