Question

Refer to the Crystal Springs Filtration Department Data Set.
1. Compute the May conversion costs in the Filtration Department.
2. If the Filtration Department completely processed 205,000 liters, what would be the average filtration cost per liter?
3. Now, assume that the total costs of the filtration process listed in the previous chart yield 165,000 liters that are completely filtered and ozonated, while the remaining 40,000 liters are only partway through the process at the end of May. Is the cost per completely filtered and ozonated liter higher, lower, or the same as in Requirement 2? Why?

Crystal Springs Data Set:
Crystal Springs produces premium bottled water. Crystal 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 May, the filtration process incurs the following costs in processing 205,000 liters:

Wages of workers operating the filtration equipment.............................. $ 10,280
Wages of workers operating ozonation equipment................................. $ 11,500
Manufacturing overhead allocated to filtration........................................ $ 25,500
Water......................................................................................................... $ 118,900
Crystal Springs has no beginning inventory in the Filtration Department.



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  • CreatedAugust 27, 2014
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