Thai Spring produces premium bottled water. Thai Spring purchases artesian water

Question

Thai Spring produces premium bottled water. Thai Spring purchases artesian water, stores the water in large tanks, and then runs the water through two processes: filtration and bottling. During February, the filtration process incurred the ollowing costs in processing 190,000 liters: EEB (Click to icon to view the cost data.) Thai Spring had no beginning Work-in-Process Inventory in the Fitration Department in February and uses the weighted-average method. Read the requirements. Requirement 1. Compute the February conversion costs in the Filtration Department. Determine the formula, then enter the amounts to compute the February conversion costs in the Filtration Department. - Conversion costs Data Table Requirement 2. The Filtration Department completely processed 190,000 liters in February. What was the filtration cost per liter? Determine the formula, then enter the amounts to compute the filtration cost per liter. (Enter your answer to the nearest cent.) Wages of workers operating the filtration equipment Manufacturing overhead allocated to filtration Water $ 18,950 22,050 130,000 Cost per liter Print Done

Explanation / Answer

1) Conversion Costs = Direct Labor + Manufacturing Overhead = $18,950 + $22,050 = $41,000

2) Cost per liter = Total Costs / Liters = $171,000 / 190,000 = $0.90

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