Fresh Spring produces premium botled water Fresh Spring purchases artesian water

Question

Fresh Spring produces premium botled water Fresh Spring purchases artesian water, stores the water in large tanks, and then runs the water theough two processes: fitration and bottling. During February, the fitration process incurred the following costs in processing 190,000 iners ?(Cick to icon to view te ost data ) Fresh Spring had no beginning Work-in-Process Inventory in the Filtration Department in February and uses the weighted-average method Read the reairements Requirement 1. Compute the February conversion costs in the Filtration Department Detemine the formula, then enter the amounts to compute the February conversion costs in the Filtration Department Data Table Direct lsborManufachuring overthead Conversion oosts $ 18,950 22.050 130,000 Wages of workers operating the fitration equipment anufacturing overthead alocated to Sitration Requirement 2. The Filtration Department completely processed 190,000 hers in February. What was the fitration cost per lier Determine the formula, then enter the amounts to compute the fitration cost per liner (Enter your answer to the nearest cent.) Conversion costs Total number of iters Cost per liter Print Done Conversion costs Direct materials Total itration costs Total number of Iiters

Explanation / Answer

given that ,

wages / direct labour cost = $18,950

manufacturing cost = $ 22,050

material =130,000

1) covertion cost = $ 18,950 +22,050

= $41,000

conversion cost is the cost incurred to convert material into finished goods.

2) filteration cost per hour is total cost incurred divided by total hours , in detail the total cost is the the total cost incurred to make final product

=($41,000+ 130,0000 ) 190,000 hours

=$0.9 per hour

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