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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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
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.
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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