Question

Wilson 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.) Wilson 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 use the weighted average method. Read the requirements. Department. (Prepare a single compound journal entry. Record debits first, then credits. Exclude explanations from any journal entries.) Date Accounts Debit Credit Mar. 31 18,716 Work-in-Process Inventory—Fermenting Raw Materials Inventory Manufacturing Overhead Wages Payable 10,672 4,552 3,492 Also prepare the journal entry to record the cost of the gallons completed and transferred out to the Packaging Department. Date Accounts Debit Credit Mar. 31

Answer 1

Date	Account	Debit	Credit
Mar.31	Work-in-Process Inventory - Packaging	$14,280
	Work-in-Process Inventory - Fermenting		$14,280
	(To record transfer of 6,800 gallons from Fermenting department to Packaging department)