Question

Requirement 3. Summarize total costs to account for and compute the cost per equivalent unit for direct materials and Gallons: Fermenting Department Cost per Equivalent Unit Month Ended March 31 Beginning work in process inventory Started production Completed and transferred out to Packaging in March Ending work in process inventory (80% of the way through 2,700 gallons 5,450 gallons 6,550 gallons Direct Conversion Materials Costs Total the fermenting process) 1,600 gallons Costs Beginning work in process inventory ($2,400 of direct $ 6,081 materials and $3,681 of conversion cost) Costs added during March Direct materials Direct labor Manufacturing overhead $ 9,010 850 1,733 $ 11,593 Cost per equivalent unit Requirement 4. Assign total costs to units (gallons) (a) completed and transferred out to the Packaging Department and then the cost per equivalent unit amounts in the same order as calculated in the preceding step. Enter your answers to Total costs added during Marclh

Answer 1

Fermenting department
Cost per Equivalent Units
Month ended March 31
COST	Material	Conversion Cost	TOTAL
Beginning WIP Inventory Cost	$       2,400	$             3,681	$                6,081
Cost incurred during period	$       9,010	$             2,583	$             11,593
Total Cost to be accounted for	$    11,410	$             6,264	$             17,674
Total Equivalent Units	8,150	7,830
Cost per Equivalent Units	$         1.40	$               0.80

Working

		Units
Reconciliation of Units
A	Opening WIP	2,700
B	Introduced	5,450
C=A+B	TOTAL	8,150
D	Transferred	6,550
E=C-D	Closing WIP	1,600

Statement of Equivalent Units
		Material		Conversion Cost
	Units	Complete %	Equivalent units	Complete %	Equivalent units
Transferred	6,550	100%	6,550	100%	6,550
Closing WIP	1,600	100%	1,600	80%	1,280
Total	8,150	Total	8,150	Total	7,830