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Smith 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). Data from the month of March for the Fermenting Department are as follows: Click the icon to view the data from March.) Smith Winery completed the following production cost report for its Fermenting 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 Fermenting Department. (Prepare a single compound journal entry. Record debits first, then credits. Exclude explanations from any journal entries.) Date Accounts Debit Credit Mar. 31

Smith 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). Data from the month of March for the Fermenting Department are as follows: Click the icon to view the data from March.) Smith Winery completed the following production cost report for its Fermenting 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 Fermenting Department. (Prepare a single compound journal entry. Record debits first, then credits. Exclude explanations from any journal entries.) Date Accounts Debit Credit Mar. 31

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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100%
Gallons
 
Beginning Work-in-Process Inventory = 400 gallons
 
Started in production = 8,700 gallons
 
Completed and transferred out to Packaging in March = 7,900 gallons
 
Ending Work-in-Process Inventory (80% of the way = 1,200 gallons
 
through the fermenting process)
 
Costs
 
Beginning Work-in-Process Inventory:
 
Direct materials =$6,370
Direct labor = 250
Manufacturing overhead allocated = 260
 
Costs added during March:
 
Direct materials = 4,550
 
Direct labor = 196
 
Manufacturing overhead allocated = 4,610
 
Total costs added during March = $9,356
 
Smith 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). Data from the month of March for the Fermenting Department are as follows: (Click the icon to view the data from March.) Smith Winery completed the following production cost report for its Fermenting Department for the month of March: A (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 Fermenting 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.
Transcribed Image Text:Smith 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). Data from the month of March for the Fermenting Department are as follows: (Click the icon to view the data from March.) Smith Winery completed the following production cost report for its Fermenting Department for the month of March: A (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 Fermenting 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.
Smith Winery Production Cost Report - Fermenting Department (Partial) Month Ended March 31 Direct Conversion Total COSTS Materials Costs Costs Costs to account for: Beginning work-in-process 6,370 $ 510 $ 6,880 Costs added during the period 4,550 4,806 9,356 Total costs to account for $ 10,920 $ 5,316 $ 16,236 9,100 8,860 Divided by: Total equivalent units of production $ 1.20 $ 0.60 Cost per equivalent unit Costs accounted for: Completed and transferred out $ 9,480 $ 4,740 $ 14,220 1,440 576 2,016 Ending work-in-process 10,920 $ 5,316 $ 16,236 Total costs accounted for
Transcribed Image Text:Smith Winery Production Cost Report - Fermenting Department (Partial) Month Ended March 31 Direct Conversion Total COSTS Materials Costs Costs Costs to account for: Beginning work-in-process 6,370 $ 510 $ 6,880 Costs added during the period 4,550 4,806 9,356 Total costs to account for $ 10,920 $ 5,316 $ 16,236 9,100 8,860 Divided by: Total equivalent units of production $ 1.20 $ 0.60 Cost per equivalent unit Costs accounted for: Completed and transferred out $ 9,480 $ 4,740 $ 14,220 1,440 576 2,016 Ending work-in-process 10,920 $ 5,316 $ 16,236 Total costs accounted for
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