Question

Refer to the Crystal Springs Filtration Department Data Set. At Crystal Springs, water is added at the beginning of the filtration process. Conversion costs are added evenly throughout the process, and in May, 165,000 liters have been completed and transferred out of the Filtration Department to the Bottling Department. The 40,000 liters remaining in the Filtration Department’s ending work in process inventory are 80% of the way through the filtration process. Recall that Cold Springs has no beginning inventories.

1. Draw a time line for the filtration process.
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.

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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