Spring produces premium bottled water. Fresh Spring purchases artesian water, st

Question

Spring produces premium bottled water. Fresh Spring purchases artesian water, stones the water in large tanks, and then the water through two process; and bottling. During February, the process incurred the following costs in processing 160,000 Fresh Spring, water in added at the beginning of the fibration process. Conversion costs are added evenly throughout the process. Assume that in February, 135,000 liters were completed out of the Department and into the Bottling Department. The 25,000 units remaining in ending Work-in-Process Inventory were 80% of the way through the fibration process. Fresh Spring has no beginning.

Explanation / Answer

wages of workers operating the fitration equipment = 22950

Manufacturing OH allocated to fitration = 23050

Water = 90000

Total cost = 136000

units accounted for Direct material cost conversion cost

current period = 135000 75937.5 38812.5

Transferred to next period 8437.5 4312.5

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