Question 2 Anderson Winery in Napa Valley, California, has two departments: Fermenting and packing. 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 follows: Beginning Work in Process Inventory Started production Completed and transferred out to Packing in March Ending Work in Process Inventory -0- gallons 8,000 gallons 6,550 gallons 1,450 gallons Costs: $0 Beginning Work in Process Inventory Costs added during March: Direct materials $104,000 $ 24,000 $ 45.390 Direct labour Manufacturing overhead Total costs added during March $173,390 The units still in process are 80% of the way through the fermenting process.

Question 2 Anderson Winery in Napa Valley, California, has two departments: Fermenting and packing. 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 follows: Beginning Work in Process Inventory Started production Completed and transferred out to Packing in March Ending Work in Process Inventory -0- gallons 8,000 gallons 6,550 gallons 1,450 gallons Costs: $0 Beginning Work in Process Inventory Costs added during March: Direct materials $104,000 $ 24,000 $ 45.390 Direct labour Manufacturing overhead Total costs added during March $173,390 The units still in process are 80% of the way through the fermenting process.

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Financial & Managerial Accounting

13th Edition

ISBN:9781285866307

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter18: Process Cost Systems

Section: Chapter Questions

Problem 18.5BPR

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