Question

S5-16 (similar to) Question Help Mountain Springs produces premium bottled water. Mountain Springs purchases artesian water, stores the water in large tanks, and then runs the water through two processes: filtration and bottling. At Mountain Springs, water is added at the beginning of the filtration process. Conversion costs are added evenly throughout the process. During May, the filtration process incurred the following costs in processing 200,000 liters: (Click the icon to view the costs.) (Click the icon to view the first two steps of the process costing procedure.) (Click the icon to view the third and fourth steps of the process costing procedure.) i Reference Complete Step 5 of the process costing procedure: Assign costs to units completed and to units in ending inventory. Prepare a schedule that answers the following questions. 1. What is the cost of the 160,000 liters completed and transferred out of the Filtration Department? 2. What is the cost of 40,000 liters remaining in the Filtration Department's ending work in process inventory? 1. What is the cost of the 160,000 liters completed and transferred out of the Filtration Department? (Round your d u Reference Mountain Springs Fitration Department Assigning Costs Mountain Springs Filtration Department Flow of Physical Units and Computation of Equivalent Units Flow of Equivalent Units Physical Direct Conversion Flow of Production Units Materials Costs Mountain Springs Filtration Department Cost per Equivalent Unit Direct Materials Conversion Costs Total Completed and transferred out: Units to account for: Beginning work in process, May 1 Flow of Production Direct Conversion Materials Costs 0 $ 0 120,000 42,240 Beginning work in process, May 1 Plus: Started in production during May 200,000 200,000 Costs assigned to units completed and transferred out Plus: Costs added during May Total costs to account for Total physical units to account for 120,000 200,000 42,240 192,000 Units accounted for: Divided by: Total equivalent units $ 0.60 $ 0.22 Completed and transferred out Plus: Ending work in process, May 31 160,000 40,000 160,000 40,000 160,000 32,000 Cost per equivalent unit 200,000 Total physical units accounted for Print Done Total equivalent units 200,000 192,000 1 Data Table Print Done Choose from any list or enter any number in the input fields and then click Check Answer. Wages of workers operating the filtration equipment ....... $ Wages of workers operating ozonation equipment.........$ Manufacturing overhead allocated to filtration ...........$ Water......... $ 8,940 9,300 24,000 120,000 part Check Answer remaining

Answer 1

1) Mountain Springs Filtration Department Assigning Costs Direct Materials Completed and transferred out Units transferred to the next processes (a) 160.000 Cost per equivalent unit (b) $0.60 Cost of units completed and transferred out (a) * (b) $96,000 Conversion Costs Totals 160.000 $0.22 $35,200 $131,200 2) Mountain Springs Filtration Department Assigning Costs Direct Conversion Materials Costs Ending work in process Inventory: Ending work in process (units) (a) 40.000 32,000 Cost per equivalent unit (6) $0.60 $0.22 Cost of ending work in process inventory (a) * (b) $24.000 $7.040 Totals $31,040