Chill SpringsChill Springs produces premium bottled water. In the Bottling? Depa

Question

Chill SpringsChill Springs produces premium bottled water. In the Bottling? Department, workers bottle the filtered water and pack the bottles into boxes. Conversion costs are incurred evenly throughout the bottling? process, but packaging materials are not added until the end of the process. February data from the Bottling Department? follow:

Requirement 1. Prepare the journal entry to record the cost of units completed and transferred to finished goods. ?(Record debits? first, then credits. Explanations are not? required.)

??

Journal Entry

Date

Accounts

Debit

Credit

Requirement 2. Post all transactions to the? "Work in Process

Inventorylong dash—?Bottling"

?T-account and determine the ending balance. ?(Leave any unused cells? blank.)

Work in Process Inventory—Bottling

Bal. February 1

Bal. February 28

Costs in beginning work Costs added in process inventory during February Transferred in $980 Transferred in* $133,000 Direct materials 0 Direct materials 32,130 Direct labour 620 Direct labour 33,200 Manufacturing overhead 776 Manufacturing overhead 22,310 Total beginning work in process Total costs added inventory as of February 1 $2,376 during February $220,640 *The Filtration Department completed and transferred out 153,000 litres at a total cost of $133,000.

Explanation / Answer

Solution 1:

Solution 2:

Journal Entries - Chill Springs Date Particulars Debit Credit 28-Feb Finished goods inventory Dr $221,850.00            To Work In Process - Bottling $221,850.00 (Being cost of completed units in bottling transferred to finished goods inventory)

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.