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

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. Requirement 2. Compute the total costs of the units​ (gallons) (a) completed and transferred out to the Packaging​ Department, and​ (b) in the Fermenting Department ending​ Work-in-Process Inventory. Complete the Production Cost Report that you began in Requirement 1 by calculating the costs per equivalent unit in this​ step, and then by calculating the the total cost of units completed and transferred out and of units in ending inventory in the following step. ​(Round the cost per equivalent unit amounts to the nearest cent and all other amounts to the nearest dollar. Abbreviation​ used: EUP​ = equivalent units of​ production.)

Gallons Beginning Work-in-Process Inventory 500 gallons Started in production 8,600 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 $540 Direct labor 195 Manufacturing overhead allocated 210 Costs added during March: Direct materials 9,288 Direct labor 3,305 Manufacturing overhead allocated 3,378 Total costs added during March $15,971

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Expert Solution

Weighted average cost
Beggining units 500 Transferred out 7,900
Started intro production 8600 Ending units 1,200
Units accounted for 9100 9100
Equivalent units Material Conversion cost
Units transferred                      A 7900 7900
Ending Units 1,200 1,200
Completion 100% 80%
B 1200 960
Total units 9100 8860
Cost per equivalent units
Particulars Material Conversion cost total
As at beginning 540 405 945
Added during the month 9288 6683 15971
Cost to be accounted for 9828 7088 16916
Total eqivalent units 9100 8860
Cost per equivalent unit 1.08 0.80 1.88
Cost per equivalent unit = Cost to be accounted for / Total equivalent units
Cost of ending work in progress
Conversion cost
Particulars Material Total
Ending units 1,200 1,200
Cost per equivalent units 1.08 0.80
Completion 100% 80%
Total cost 1296 768 2064
Cost of goods transferred Conversion cost
Particulars Material Total
Number of units 7900 7900
Cost per equivalent units 1.08 0.80 1.88
Total amount 8532 6320 14852

ekkarill92 answered 1 year ago
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