Refreshing Water Company produces premium bottled water. In the second department, the Bottling Department, conversion costs are incurred evenly throughout the bottling process, but packaging materials are not added until the end of the process. Costs in beginning Work-in-Process Inventory include transferred in costs of $1,400, direct labor of $700, and manufacturing overhead of $330. March data for the Bottling Department follow:
(Requirement 1 only)
REFRESHING WATER COMPANY
Work-in-Process Inventory-Bottling
Month Ended March 31, 2018

Requirements
1. Prepare a production cost report for the Bottling Department for the month of March. The company uses the weighted-average method.
2. Prepare the journal entry to record the cost of units completed and transferred out.
3. Post all transactions to the Work-in-Process Inventory-Bottling T-account. What is the ending balance?

Transcribed Image Text:

Dollars Manufacturing Overhead Transferred In Direct Materials Total Units Direct Labor Costs Beginning inventory, Mar. 1 (40% complete) Production started Transferred out Ending inventory, Mar. 31 (70% complete) 15,000 160,000 $ 1,400 135,100 $ 700 $ 330 $ 2,430 33,100 $ 30,400 16,300 214,900 152,000 23,000