Delightful Winery produces bottled wines for the hospitality industry in a four-stage process – Pumping, Filtration, Filling and Capping. After leaving the Capping Department, the bottled wines are  packaged and sent to the Finished Goods warehouse for shipment to customers.  The following data relates to the Filling Department for the month of June during which 4,000 bottled  wines valued at $2,200,000 were transferred from the Filtration Department to the Filling Department.  Other production costs incurred during the month are summarized as follows: Direct Materials Added Direct Manufacturing Wages Manufacturing Overhead $342,000 $851,200 $410,400 Process inspection occurs during the process and normally no losses are expected at this stage.  However, during the month 10% of the bottled wines transferred into the Filling Department were  rejected at inspection. Rejected units from this department are sold as scrap at $750 per bottle.  These units had reached the following degree of completion: Transfer from Filtration 100% Direct material added 80% Conversion costs 50% During June 2,800 bottled wines were completed and transferred to the Capping Department. Work-in-progress at the end of June had reached the following degree of completion: Transfer from Filtration 100% Materials added 60% Conversion costs 40% Materials added and conversion costs are incurred uniformly throughout each process. There were no incomplete units in the Filling Department at the beginning of the period. Required: (a) Prepare a statement of equivalent production to determine the equivalent units for direct  materials (From Filtration & Direct Material Added), and conversion costs and the cost per  equivalent unit for direct materials and conversion costs.  (b) Compute the: ▪ total cost of the bottled wines filled and transferred out of the Capping Department ▪ cost of the unexpected losses ▪ cost of ending work in process inventory in the Filling Department

Delightful Winery produces bottled wines for the hospitality industry in a four-stage process –

Pumping, Filtration, Filling and Capping. After leaving the Capping Department, the bottled wines are 

packaged and sent to the Finished Goods warehouse for shipment to customers. 

The following data relates to the Filling Department for the month of June during which 4,000 bottled 

wines valued at $2,200,000 were transferred from the Filtration Department to the Filling Department. 

Other production costs incurred during the month are summarized as follows:

Direct Materials Added

Direct Manufacturing Wages

Manufacturing Overhead

$342,000

$851,200

$410,400

Process inspection occurs during the process and normally no losses are expected at this stage. 

However, during the month 10% of the bottled wines transferred into the Filling Department were 

rejected at inspection. Rejected units from this department are sold as scrap at $750 per bottle. 

These units had reached the following degree of completion:

Transfer from Filtration 100%

Direct material added 80%

Conversion costs 50%

During June 2,800 bottled wines were completed and transferred to the Capping Department.

Work-in-progress at the end of June had reached the following degree of completion:

Transfer from Filtration 100%

Materials added 60%

Conversion costs 40%

Materials added and conversion costs are incurred uniformly throughout each process.

There were no incomplete units in the Filling Department at the beginning of the period.

Required:

(a) Prepare a statement of equivalent production to determine the equivalent units for direct 

materials (From Filtration & Direct Material Added), and conversion costs and the cost per 

equivalent unit for direct materials and conversion costs. 

(b) Compute the:

▪ total cost of the bottled wines filled and transferred out of the Capping Department

▪ cost of the unexpected losses

▪ cost of ending work in process inventory in the Filling Department