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Complete five-step procedure in first department (Learning objective 3)
Cove Point Winery in Lusby, Maryland, 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 follows:
Gallons:
Beginning work in process inventory
2,000 gallons
Started production
6,000 gallons
Completed and transferred out to Packaging in March
6,550 gallons
Ending work in process inventory (80% of the way through the fermenting process)
1,450 gallons
Costs:
Beginning work in process inventory ($2,800 of direct materials and $2,855 of conversion cost)
$ 5,655
Costs added during March:
Direct materials
$ 8,800
Direct labor
1,600
Manufacturing overhead
2,484
Total costs added during March
$12,884
Requirements
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