data: 1 Springs produces premium bottled water. In the Bottling Department, work
ID: 2334645 • Letter: D
Question
data: 1
Springs produces premium bottled water. In the Bottling Department, workers bottle the filtered water and pack the bottles into boxes. Conversion costs are incurred evenly throughout the bottling process, but packaging materials are not added until the end of the process. February data from the Bottling Department follow:
(Complete Step 5 of the process costing procedure: assign costs to units completed and to units in ending inventory.
Pure Springs
Bottling Department
Assignment of Costs
Transferred-in
Direct
Conversion
Assign costs:
Costs
Materials
Costs
Total
Units
Cost
Units
Cost
Units
Cost
x (
+
+
)
Ending work in process inventory:
x
x
x
Pure Springs Bottling Department Cost per Equivalent Unit Transferred- Direct Conversion in Materials Costs Beginning work in process, February 1 $3,300 $0 $1,290 Costs added during February 132,000 28,260 55,900 Total costs to account for 135,300 28,260 57,190 data: 2 Pure Springs Bottling Department Flow of Physical Units and Computation of Equivalent Units Flow of Equivalent Units Physical Transferred- Direct Conversion Flow of Production Units in Materials Costs Units to account for: Beginning work in process, February 1 9,000 Transferred in 156,000 Total physical units to account for 165,000 Units accounted for: Completed and transferred out during February 157,000 157,000 157,000 157,000 Ending work in process, February 28 8,000 8,000 0 6,400 Total physical units accounted for 165,000 Total equivalent units 165,000 157,000 163,400Explanation / Answer
Cost per equivalent units Transferred Material Conversion In cost cost Total cost to account for 135300 28260 57190 Divide: Equivalent units 165000 157000 163,400 Cost per Equivalent unit 0.82 0.18 0.35 Assignment of cost Transferred in cost Material Conversion Total Units Cost per EUP Cost Units Cost per EUP Cost Units Cost per EUP Cost Units completed and transferred out 157000 0.82 128740 157,000 0.18 28260 157000 0.35 54950 211950 Ending WIP inventory Transfrred in cost 8000 0.82 6560 Material cost 0 0 0 Conversion cost 6400 0.35 2240 8800 Total 165000 135,300 157000 28260 163400 57190 220750
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