Refer to the Fresh Springs Bottling Department Data Set.

1. Draw a time line.

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

Fresh Springs produces premium bottled water. The preceding Short Exercises considered the first process in bottling premium water - Filtration. We now consider Fresh 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.

February data from the Bottling Department follow:

Beginning work in process inventory

(40% of the way through the process)................................................................ 5,000 liters

Transferred in from Filtration......................................................................... 150,000 liters

Completed and transferred out to Finished Goods

Inventory in February.................................................................................... 153,000 liters

Ending work in process inventory

(80% of the way through the bottling process)................................................ 2,000 liters

The Filtration Department completed and transferred out 150,000 liters at a total cost of $131,000.

Transcribed Image Text:

Costs in beginning work in process inventory Transferred in Direct materials Direct labor Manufacturing overhead Total beginning work in process inventory as of February 1 Costs added during February $750 0 630 2.478 Transferred in Direct materials. Direct labor Manufacturing overhead Total costs added during February 131,000 32,130 33,300 22,340 ead... $218,770 $3,858