Smith Winery in Pleasant Valley, New York, 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). Data from the month of March for the Fermenting Department are as follows: Click the icon to view the data from March.) Smith Winery completed the following production cost report for its Fermenting Department for the month of March: (Click the icon to view the production cost report.) 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
Smith Winery in Pleasant Valley, New York, 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). Data from the month of March for the Fermenting Department are as follows: Click the icon to view the data from March.) Smith Winery completed the following production cost report for its Fermenting Department for the month of March: (Click the icon to view the production cost report.) 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
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter6: Process Costing
Section: Chapter Questions
Problem 21E: Dama Company produces womens blouses and uses the FIFO method to account for its manufacturing...
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Question
100%
Gallons
Beginning Work-in-Process Inventory = 400 gallons
Started in production = 8,700 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 =$6,370
Direct labor = 250
Manufacturing overhead allocated = 260
Costs added during March:
Direct materials = 4,550
Direct labor = 196
Manufacturing overhead allocated = 4,610
Total costs added during March = $9,356
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