Baker Winery Manufactures a Fine Wine in Two Departments Fermenting

Baker Winery manufactures a fine wine in two departments Fermenting and Bottling. In the Fermenting Department grapes are aged in casks for a period of 30 days. In the Bottling Department the wine is bottled and then sent to the finished goods warehouse. Labor and overhead are incurred uniformly through both processes. Materials are entered at the beginning of both processes. Cost and production data for the Fermenting Department for December 2016 are presented below: Production data
$\begin{array}{lrl}\text { Beginning work in process (gallons) } & 5,000 & (40 \%) \\\text { Gallons started into production } & 79,000 & \\\text { Ending work in process (qallons) } & 8,000 & (75 \%)\end{array}$
Instructions
(a) Compute the equivalent units of production.
(b) Determine the unit production costs.
(c) Determine the costs to be assigned to units transferred out and ending work in process.

Correct Answer:

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