E5-35A

1. Draw a timeline for the Fermenting Department. Conversion costs added evenly throughout the process Start 80% complete 100% complete Direct material (graped) added 6560 gallons completed and transferred out 1400 gallons incomplete 2. Summarize the flow of physical units and compute the total equivalent Equivalent Units UNITS Physical Units Direct Materials Units to account for: Beginning work in process 2100 Started in production 5860 Total units to account for 7960 Units accounted for: Completed and transferred out 6560 6560 Ending work in process 1400 1400 Total units accounted for 7960 7960 3. Summarize total costs to account for and compute the cost per equival COSTS Direct Materials Conversion Costs Costs to account for: Beginning work in process 2500 3715 Costs added during the period 9440 2429 Total costs to account for 11940 6144 Divided by: Total EUP 7960 7680 Cost per equivalent unit 1.5 0.8 4. Assign total costs to units (gallons): Costs accounted for: a. Completed and transferred out 9840 5248 b. Ending work in process 2100 896 Total costs account for 11940 6144 5. What is the average cost per gallon transferred out of Fermenting into P The average cost per gallon transferred out of Fermenting into Packaging: $ The company’s managers would want to know this cost for purposes of val