Now assume that in February. 135,000 liters were completed and transferred out o

Question

Now assume that in February. 135,000 liters were completed and transferred out of the Filtration Department and into the Bottling Department. (Click the icon to view the additional information.) Compute the equivalent units of production for direct materials and conversion costs for the Filtration Department. China Spring produces premium botled water. (Click the icon to view the additional information.) During February, the filtration process incurred the following costs in processing 190,000 liters: EEB Click the icon to vi the costs.

Explanation / Answer

Equivalent Units Particulars Physical Units Direct Material Conversion Costs Units Accounted for: Completed and transferred out 135000 92368 30922 Ending WIP 55000 37632 10078 Total Units Accounted for 190000 130000 41000 Water(Direct Material) 130000 Total Units Accounted for 190000 (Since water added at beg) 100% Water Per Unit 0.68 Equivalent Units for Conversion Costs: Physical Units % E.Units Completed and transferred out 135000 100% 135000 Ending WIP 55000 80% 44000 190000 179000 Conversion Costs: Wages 18950 Manufacturing OH 22050 Total 41000 Equivalent Units for Conversion Costs: 179000 Conversion Cost PU 0.23

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