Smith Winery in Pleasant Valley, New York, has two departments: Fermenting and Packaging. Direct materials are added Smith Winery completed the following production cost report for its Fermenting Department for the month of March: 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: E (Click the icon to view the data from March.) E(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. Mar. 31 vvorK-in-Process inverory-rermenurg 9,300 Raw Materials Inventory 4,550 Wages Payable 196 Manufacturing Overhead 4,610 Also prepare the journal entry to record the cost of the gallons completed and transferred out to the Packaging Department. Date Accounts Debit Credit Mar. 31 Work-in-Process Inventory-Packaging 14,220 Work-in-Process Inventory-Fermenting 14,220 Requirement 2. Post the journal entries to the Work-in-Process Inventory-Fermenting T-account. What is the ending balance? Post the entries using the appropriate descriptions as posting references. Denote the ending balance as "Bal." Work-in-Process Inventory-Fermenting Beg. Bal. 6,880 Transferred to Packaging Direct materials Direct labor Manufacturing overhead Bal.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter6: Process Costing

Section: Chapter Questions

Problem 9CE: Jackson Products produces a barbeque sauce using three departments: Cooking, Mixing, and Bottling....

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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
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
4,550
4,806
9,356
Costs added during the period
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
%24

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:
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.
E (Click the icon to view the data from March.)
Read the requirements.
Mar. 31
VvorK-in-Process iiveritory-rerrmienting
9,350
Raw Materials Inventory
4,550
Wages Payable
196
Manufacturing Overhead
4,610
Also prepare the journal entry to record the cost of the gallons completed and transferred out to the Packaging Department.
Date
Accounts
Debit
Credit
Mar. 31
Work-in-Process Inventory-Packaging
14,220
Work-in-Process Inventory-Fermenting
14,220
Requirement 2. Post the journal entries to the Work-in-Process Inventory-Fermenting T-account. What is the ending balance?
Post the entries using the appropriate descriptions as posting references. Denote the ending balance as "Bal."
Work-in-Process Inventory-Fermenting
Transferred to Packaging
Beg. Bal.
Direct materials
6,880
Direct labor
Manufacturing overhead
Bal.

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