Refer to the Cold Springs Filtration Department Data Set and your answer to S5-15. Complete Steps 3 and 4 of the process costing procedure: Summarize total costs to account for and then compute the cost per equivalent unit for both direct materials and conversion costs.
Cold Springs produces premium bottled water. Cold Springs purchases artesian water, stores the water in large tanks, and then runs the water through two processes:
• Filtration, where workers micro-filter and ozonate the water
• Bottling, where workers bottle and package the filtered water
During November, the filtration process incurs the following costs in processing 225,000 liters:
Wages of workers operating the filtration equipment................................ $ 12,800
Wages of workers operating ozonation equipment.................................... $ 14,400
Manufacturing overhead allocated to filtration......................................... $ 38,050
Water......................................................................................................... $ 148,500
Cold Springs has no beginning inventory in the Filtration Department.