Refer to the Fresh Springs Bottling Department Data Set and your answers to S5-19 and S5-20. Complete Step 5 of the process costing procedure: Assign costs to units completed and to units in ending inventory.
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.

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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