Refer to the Arctic Springs Filtration Department Data Set. At Arctic Springs, water is added at the beginning of the filtration process. Conversion costs are incurred evenly throughout the process, and in December, 160,000 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 85% of the way through the filtration process. Recall that Arctic 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.

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