Refer to the Arctic Springs Filtration Department Data Set.

1. Compute the December conversion costs in the Filtration Department.

2. If the Filtration Department completely processed 200,000 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 160,000 liters that are completely filtered and ozonated, while the remaining 40,000 liters are only partway through the process at the end of December. Is the cost per completely filtered and ozonated liter higher, lower, or the same as in step 2? Why?

Arctic Springs produces premium bottled water. Arctic 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 December, the filtration process incurs the following costs in processing 200,000 liters:

Arctic Springs has no beginning inventory in the Filtration Department.

Transcribed Image Text:

Wages of workers operating the filtration equipment Wages of workers operating ozonation equipment Manufacturing overhead allocated to filtration . Water .......... $ 9,380 $ 9,300 $ 24,000 $120,000