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E18-23 (similar to)

Johnson

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). Conversion costs are added evenly throughout each process. The company uses the weighted-average method. Data from the month of March for the Fermenting Department are as follows:

Gallons
	Beginning Work-in-Process Inventory	400	gallons
	Started in production	7,500	gallons
	Completed and transferred out to Packaging in March	4,400	gallons
	Ending Work-in-Process Inventory (80% of the way	3,500	gallons
	through the fermenting process)
	Costs
	Beginning Work-in-Process Inventory:
	Direct materials	$1,264
	Direct labor	160

1.	Compute the Fermenting Department's equivalent units of production for direct materials and for conversion costs.
2.	Compute the total costs of the units (gallons)
	a. completed and transferred out to the Packaging Department. b. in the Fermenting Department ending Work-in-Process Inventory.

Requirement 1. Compute the Fermenting Department's equivalent units of production for direct materials and for conversion costs.

Complete the partial production cost report below for the Fermenting Department, showing the equivalent units of production for direct materials and for conversion costs.

Johnson Winery
Production Cost Report - Fermenting Department (Partial)
Month Ended March 31
		Equivalent Units
	Physical	Direct	Conversion
UNITS	Units	Materials	Costs
Units to account for:
Started in production
Total units to account for
Units accounted for:
Total units accounted for

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