Question

High Springs produces premium bottled water. High Springs purchases artesian water, stores the water in large tanks, and then runs the water through two processes: filtration and bottling High Springs, water is added at the beginning of the fitration process. Conversion costs are added evenly throughout the process, and in May, 125,000 liters have been completed and transferred out of the Filtration Department into the Bottling Department. The 115,000 liters remaining in the Filtration Department's ending work in process inventory are 80% of the way through the fortion process. High Springs has no beginning inventories During May, the filtration process incurs the following costs in processing 240.000 liters Click the icon to view the costs.)

Answer 1

1. Fill in the time line for the filtration process as shown below: Conversion costs added evenly throughout the process 80% Complete 100% Complete Start Filtered water transferred from filteration Transferred out to Bottling 125.000 liters have been completed and transferred out 115.000 liters incomplete Determine the equivalent units of direct materials and conversion costs as shown below: HS Filteration Department Flow of Physical Units and Computation of Equivalent Units Flow of Equivalent Units Physical Direct Conversion Flow of Production Units Materials Costs Units to account for: Beginning inventory Units added to the production 240.000 Total physical units to account for 240.000 Units accounted for: 125,000 125,000 Started and completed 125.000 [125.000 x 100%] | [125.000 x 100%] 115.000 92.000 Ending inventory 115,000 1115.000 x 100%] | [115.000 80%] Total physical units accounted for 240.000 240,000 217,000