Refer to the Canadian Springs Filtration Department Data Set and your answer to S5-17.
Canadian Springs produces premium bottled water. Canadian Springs purchases artesian water, stores the water in large tanks, and then runs the water through two processes:
• Filtration, where workers microfilter and ozonate the water
• Bottling, where workers bottle and package the filtered water
During February, the filtration process incurs the following costs in processing
200,000 litres:
Wages of workers operating the filtration equipment............................ $ 11,100
Wages of workers operating ozonation equipment................................ 12,850
Manufacturing overhead allocated to filtration..................................... 24,050
Water.................................................................................................... 120,000
Canadian Springs has no beginning inventory in the Filtration Department.
Requirements
1. Record the journal entry to transfer the cost of the 160,000 litres completed and transferred out of the Filtration Department and into the Bottling Department.
2. Record all of the transactions in the “Work in Process Inventory—Filtration” T-account.