Schrader Cellars uses the FIFO method in its two departmentprocess costing system: Fermenting (grape sorting is part of thefermentation process) and Packaging. Direct materials (grapes) areadded at the beginning of the fermenting process and at the end ofthe packaging process (bottles). Conversion costs are added evenlythroughout each process. Data from the month of december for theFermenting Department are below:

Beginning work in process inventory:

           Units in beginning work in processinventory           3,000 gallons

           Materialscosts                                                           $122,000

           Conversioncosts                                                        $7,000

           Percentage complete with respect tomaterials          100%

           Percentage complete with respect toconversion        50%

Units started into production during themonth                     5,000 gallons

Materials costs added during themonth                                $250,000

Conversion costs added during themonth                            $30,000

Ending work in process inventory:

           Units in ending work inprocess                                2,000 gallons

           Percentage complete with respect tomaterials          100%

           Percentage complete with respect toconversion        75%

REQUIRED:

1. Prepare a FIFO production report for the FermentationDepartment for Schrader Cellars for the month ended December 31,2018.

Schrader Cellars uses the FIFO method in its two departmentprocess costing system: Fermenting (grape sorting is part of thefermentation process) and Packaging. Direct materials (grapes) areadded at the beginning of the fermenting process and at the end ofthe packaging process (bottles). Conversion costs are added evenlythroughout each process. Data from the month of december for theFermenting Department are below:

Beginning work in process inventory:

           Units in beginning work in processinventory           3,000 gallons

           Materialscosts                                                           $122,000

           Conversioncosts                                                        $7,000

           Percentage complete with respect tomaterials          100%

           Percentage complete with respect toconversion        50%

Units started into production during themonth                     5,000 gallons

Materials costs added during themonth                                $250,000

Conversion costs added during themonth                            $30,000

Ending work in process inventory:

           Units in ending work inprocess                                2,000 gallons

           Percentage complete with respect tomaterials          100%

           Percentage complete with respect toconversion        75%

REQUIRED:

1. Prepare a FIFO production report for the FermentationDepartment for Schrader Cellars for the month ended December 31,2018.