Question

E18-23 (similar to)

Johnson

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

Gallons
	Beginning Work-in-Process Inventory	400	gallons
	Started in production	7,500	gallons
	Completed and transferred out to Packaging in March	4,400	gallons
	Ending Work-in-Process Inventory (80% of the way	3,500	gallons
	through the fermenting process)
	Costs
	Beginning Work-in-Process Inventory:
	Direct materials	$1,264
	Direct labor	160
	Manufacturing overhead allocated	180
	Costs added during March:
	Direct materials	8,611
	Direct labor	150
	Manufacturing overhead allocated	4,550
	Total costs added during March	$13,311

1.	Compute the Fermenting​ Department's equivalent units of production for direct materials and for conversion costs.
2.	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.

Reqirement 2. Compute the total costs of the units​ (gallons) (a) completed and transferred out to the Packaging​ Department, and​ (b) in the Fermenting Department ending​ Work-in-Process Inventory.

Complete the Production Cost Report that you began in Requirement 1 by calculating the costs per equivalent unit in this​ step, and then by calculating the the total cost of units completed and transferred out and of units in ending inventory in the following step. ​(Round the cost per equivalent unit amounts to the nearest cent and all other amounts to the nearest dollar. Abbreviation​ used: EUP​ = equivalent units of​ production.)

Johnson Winery
Production Cost Report - Fermenting Department (Partial)
Month Ended March 31
	Direct	Conversion	Total
COSTS	Materials	Costs	Costs
Costs to account for:
Total costs to account for
Cost per equivalent unit

I need help with Reqirment #2, and Thank you for Reqirment #1

Answer 1

The answer has been presented in the supporting sheet. All the parts ahs been solved with detailed explanation and format. For detailed explanation and format.

Answer 5 Firstly we have to calculate the equivalent units 6 Johnson Winery 7 Production Cost Report 3 Month Ended March 31 O QUANTITIES 1 Completed and transferred out 2 Work in process ending work in process Equivalent units Physical units Material Conversion cost 4400 4400 4400 3500 3500 2800 (3500*100%) (3500*80%) 7900 7900 7200 Material Conversion cost Total 4 Total units 6 Costs 7 Costs to account for 3 Cost in beginning work in process 9 Cost incurred during the period o Total cost to account for 1 Equivalent units 2 Unit cost 1264 8611 9875 7900 1.25 340 4700 5040 7200 0.70 1604 13311 149151 1.95

85801 8580 4 Cost reconcilitaion schduele 5 Units started and Transferred (1.95*4400) 6 Total costs transferred out 7 Work in process ending 3 Material (3500*1.25) 9 Conversion Cost (2800*.7) 0 Total costs 4375 1960 6335 14915 2 Thus the final answer is 3 Completed and transferred to packaging 4 In the fermenting department in the ending work in process inventory 8580 6335 5