JacksonJackson Vineyards in Nova Scotia has two? departments: Fermenting and Pac
ID: 2430155 • Letter: J
Question
JacksonJackson Vineyards in Nova Scotia 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. Data from the month of March for the Fermenting Department are as? fol
Requirement 1. Present the journal entry to record the use of direct materials and direct labour and the allocation of manufacturing overhead to the Fermenting Department.? Also, give the journal entry to record the cost of the litres completed and transferred out to the Packaging Department.
?Let's begin with recording the entry for the use of direct materials and direct labour and the allocation of manufacturing overhead to the Fermenting Department. ?(Record debits? first, then credits. Explanations are not? required.)
??
Journal Entry
Date
Accounts
Debit
Credit
Record the journal entry to record the cost of the litres completed and transferred out to the Packaging Department.
Journal Entry
Date
Accounts
Debit
Credit
Requirement 2. Post the journal entries to the Work in Process. Inventorylong dash—Fermenting ?T-account. What is the ending? balance? ?(Leave any unused cells? blank.)
Work in Process Inventory—Fermenting
Bal. March 1
Bal. March 31
More Less
.
Data Table
Litres:
Beginning work in process inventory . . . . . . . . . . . . . . . . . . . .
2,900
litres
Started production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4,770
litres
Completed and transferred out to Packaging in March . . . . .
6,420
litres
Ending work in process inventory (80% of the way through
the fermenting process) . . . . . . . . . . . . . . . . . . . . . . . .
1,250
litres
Costs:
Beginning work in process inventory ($2,100 of direct
materials and $1,409 of conversion cost) . . . . . . . . . .
$3,509
Costs added during March:
Direct materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10,172
Direct labour . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,000
Manufacturing overhead . . . . . . . . . . . . . . . . . . . . . . . .
1,301
Total costs added during March . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$12,473
PrintDone
Data Table
Jackson Vineyards
Fermenting Department
Assignment of Costs
Assign costs:
Direct Materials
Conversion Costs
Total
Completed and transferred out
6,420
x (
$1.60
+
$0.50
)
$13,482.00
Ending work in process inventory:
Direct materials
1,250
x
$1.60
2,000.00
Conversion costs
1,000
x
$0.50
500.00
Total ending work in process inventory, March 31
2,500.00
Total cost accounted for
$15,982.00
PrintDone
Explanation / Answer
Solution 1:
Solution 2:
Computation of Equivalent unit of Production - Weighted Average (Fermenting Department) Particulars Physical Units Material Conversion (Labor + Overhead) Unit completed & Transferred out 6420 6420 6420 Closing WIP: 1250 Material (100%) 1250 Conversion (80%) 1000 Equivalent units of production 7670 7670 7420Related Questions
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