Cool Spring Company produces premium bottled water. In the second department, the Bottling Department, conversion costs are incurred evenly throughout the bottling process, but packaging materials are not added until the end of the process. Costs in beginning Work-in-Process Inventory include transferred in costs of $ 1,700, direct labor of $ 700, and manufacturing overhead of $ 330. February data for the Bottling Department follow:

Requirements
1. Prepare a production cost report for the Bottling Department for the month of February.
2. Prepare the journal entry to record the cost of units completed and transferred out.
3. Post all transactions to the Work-in-Process Inventory—Bottling T-account. What is the endingbalance?

Transcribed Image Text:

COOL SPRING COMPANY Work-in-Process Inventory-Bottling Month Ended February 28, 2015 Dollars Transferred In Direct Manufacturing Materials Labor Overhead Total Costs Direct Units Beginning inventory, Feb. 1 (40% complete) Production started Transferred out Ending inventory Feb. 28 (70% complete) 2,730 214,600 700 330 12,000 163,000 134,800 30,400 33,100 6,300 152,000 S 1,700 23,000