Summarize physical flow and compute equivalent units (Learning Objective 2) Refer to the Polar Springs Filtration Department Data Set. At Polar Spring, water is added at the beginning of the filtration process. Conversion costs are added evenly throughout the process, and in February, 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 80% of the way through the filtration process. Recall that Polar Spring has no beginning inventories.

Requirements 1. Draw a time line for the filtration process similar to the one in Exhibit 4-6.

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 equiv¬ alent units of direct materials and conversion costs. Your answer should look similar to Exhibit 4-5.

Polar Springs Data Set: Filtration Department Polar Springs produces premium bottled water. Polar 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 February, the filtration process incurs the following costs in processing 200,000 liters:

Polar Springs has no beginning inventory in the Filtration Department.

Wages of workers operating the filtration equipment...... ....... $ 11,100 Wages of workers operating ozonation equipment. Manufacturing overhead allocated to filtration... Water.......... 12,850 24,050 120,000