Refer to the Cold Springs Filtration Department Data Set. At Cold Springs, water is added at the beginning of the filtration process. Conversion costs are added evenly throughout the process, and in November, 150,000 liters have been completed and transferred out of the Filtration Department to the Bottling Department. The 75,000 liters remaining in the Filtration Department's ending work in process inventory are 90% 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. Your answer should look similar to Exhibit 5-5.

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.