Refer to the Arctic Springs Bottling Department Data Set and your answers to S5-18 and S5-19. Complete Step 5 of the process costing procedure: Assign costs to units completed and to units in ending inventory
Arctic Springs produces premium bottled water. The preceding Short Exercises considered the first process in bottling premium water-Filtration. We now consider Arctic Springs' second process-Bottling. 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.
December data from the Bottling Department follow:
Beginning work in process inventory (45% of the way through the process) ... 9,000 liters
Transferred in from Filtration ........................................................................ 160,000 liters
Completed and transferred out to Finished Goods Inventory in
December ....................................................................................................... 147,000 liters
Ending work in process inventory (85% of the way through the bottling
process) .......................................................................................................... 22,000 liters

The Filtration Department completed and transferred out 160,000 liters at a total cost of $148,000

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Costs in beginning work in process inventory Costs added during December Transferred in . Direct materials . Direct labor Manufacturing overhead Total beginning work in process inventory as of December 1 $4, 100 Transferred in O Direct materials 650 Direct labor 2,025 Manufacturing overhead Total costs added during December $148,000 30,870 35,000 25,291 $6.775 $239.161