core 0 of 1 pt 3 of 5 3 complete HW Score 0 0 of 5 pts E1824

core: 0 of 1 pt 3 of 5 (3 complete) HW Score: 0%, 0 of 5 pts E18-24 (similar to) Question Help Anderson Winery in Pleasant Valley, New York, has two departments: Fermenting Anderson Winery completed the following production cost report for its 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 Click the icon to view the production cost report.) month of March for the Fermenting Department are as follows: EEE (Click the icon to view the data from March.) Department for the month of March: Conversion costs are added evenly throughout each process. The company uses the weighted-average method Read the requirements Requirement 1. Prepare the journal entries to record the assignment of direct materials and direct labor and the allocation of manufacturing overhead to the Fermenting Department. Assume labor costs are accrued and not yet paid. Also prepare the journal entry to record the cost of the gallons completed and transferred out to the Packaging Department. Begin with the summary journal entry to record the assignment of direct materials and direct labor and the allocation of manufacturing overhead to the Fermenting Department. (Prepare a single compound journal entry. Record debits first, then credits. Exclude explanations from any journal entries.) Date Accounts Debit Credit Mar. 31

Solution

Solution 1:

Solution 2:

Solution 3:

Average cost per gallon transferred out of the fermenting to packaging = cost of gallon transferred out / Nos of gallon transferred out

= $12,324/ 7900 = $1.56 per gallon

Anderson winery\'s manager wants to know this cost so that he can compare cost for current period with past period / standard cost. It will help him to identify favorable and unfavorable variances in cost so that he can make startegy to control the cost. Further it will also help him to identify cost of final product based on which sales price will be determined.

Jounral Entries
Date	Particulars	Debit	Credit
31-Mar	Work In Process - Fermenting Dr	$12,290.00
	To Raw materials inventory		$8,330.00
	To Wages Payable		$372.00
	To Manufacturing overhead		$3,588.00
31-Mar	Work In Process - Packaging Dr	$12,324.00
	To Work In Process - Fermenting		$12,324.00