Refer to the Canadian Springs Filtration Department Data Set. At Canadian Springs, water is added at the beginning of the filtration process. Conversion costs are added evenly throughout the process, and in February, 160,000 litres have been completed and transferred out of the Filtration Department to the Bottling Department. The 40,000 litres remaining in the Filtration Department€™s ending work in process inventory are 80% of the way through the filtration process. Recall that Canadian Springs has no beginning inventories.
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. Draw a time line for the filtration process similar to the one in Exhibit 5-6.

2. Complete the first two steps of the process costing procedure for the Filtration Department: summarize the physical flows of units and then compute the equivalent units of direct materials and conversion costs.

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Conversion costs added evenly throughout production process Start 25% complete 100% completion Direct materials added Transferred OUT to Insertion Dept. 40,000 masks completed and transferred out 40,000 10,000 masks started bet not finished (ending work in process inventory) GogglesPlus SHAPING DEPARTMENT Month Ended October 31 Step 1 Step 2 Equivalent Units Flow of Physical Units Direct Materials Conversion Costs Flow of Production Units to account for: ing work in process, October 1 Started in production during October Total physical units to account for 0 50,000 0,000 Units accounted for: Completed and transferred out during October Ending work in process, October 31 Total physical units accounted for 40,000 10,000 50,000 40,000 10,000 40,000 2,500* Total equivalent units +10,000 units each 25% complete 50,000 42,500 2,500 equivalent units