3. Samson Winery in Pleasant Valley, N.Y, has two departments: Fermenting and Packaging. DM 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 the fermenting department are as follows: Gallons: Beginning WIP inventory Started in production Completed and transferred out to packaging Ending WIP inventory (80% of the way through The fermenting process) 0 gallon 9100 gallons 7900 gallons 1200 gallons Costs Beginning WIP inventory Costs added during March: DM DL MO Total costs added during March 9828 3500 3588 $ 16916 Requirement: Compute the equivalent units of production for DM and for conversion costs
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