Pauson Wnery in Nawburyport, Massachusets, has wo dopartments: Formenting and Pa

Question

Pauson Wnery in Nawburyport, Massachusets, has wo dopartments: Formenting and Packaging. Direct maerias are added at the boginning of the formenting proceas (grapea) and at the end of the packaging proes (bottea) Conversion costs are added evenly throughout each process. Data froms the month of March for the Fermentng Dapartment are as folos EEl (Clck the icon to view the dets from March Read the reuirements. Carversion ecsts added evenly threughout the proces 60% 100% Data Table Diredt materials (grapes) added Transerred out to PHckaging 6,580 galona oomplated and tranalomod ou Culn Boginning work in procosa inventory Startod produc on Compleled and transferred out to Packiging in March Ending work in procou invomory 480% of the way through 2,300 galiong 5,580 galilons 8,580 gallons 1,300 gallona incomplota the fermenting process) 1,300 gallons Costs Beginning work in procoss inventory (1,700 of direct Month Ended March 31 4,238 materials and $2,530 of conversion cost) Flow of Equivalent Units Costs added during March Physical Direct .--.--..--.--.. ---. . S9,332 700 2,006 S 12,128 Orect labor Total ooats added during March Print Done Total equivalent units

Explanation / Answer

Equivalent Units :-

Equivalent Units

Flow of Production

Flow of Physical Units

Direct Materials

Conversion Cost

Units to account for :

Beginning WIP

2300

Started Production

5580

Total

7880

Units to account for :

Units completed & Transferred

6580

6580

6580

Ending WIP

1300

1300

(1300 * 80%)

=1040

7880

Equivalent Units

7880

7620

*Assume weighted Average Method

Equivalent Units

Flow of Production

Flow of Physical Units

Direct Materials

Conversion Cost

Units to account for :

Beginning WIP

2300

Started Production

5580

Total

7880

Units to account for :

Units completed & Transferred

6580

6580

6580

Ending WIP

1300

1300

(1300 * 80%)

=1040

7880

Equivalent Units

7880

7620

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