Baker Winery manufactures a fine wine in two departments, Fermenting and Bottling. In the
Fermenting Department, grapes are aged in casks for a period of days. In the Bottling
Department, the wine is bottled and then sent to the finished goods warehouse. Labor and
overhead are incurred uniformly through both processes. Materials are entered at the
beginning of both processes. Cost and production data for the Fermenting Department for
December are presented below:
Cost data
Beginning work in process inventory
Materials added during December
Conversion costs added during December
Total costs
Production data
Beginning work in process gallons
Gallons started into production
Ending work in process gallons
$ $ of materials cost and $ conversion costs
complete
complete
Compute equivalent units of output for direct materials and conversion costs using the FIFO
method. Use the chart below to help with calculations.
EQUIVALENT UNITS
Compute the unit material cost, unit conversion cost, and total manufacturing cost per unit
using the FIFO Method. Round to Decimal Places
