Refer to the Arctic Springs Bottling Department Data Set.

1. Draw a time line.

2. Complete the first two steps of the process costing procedure for the Bottling Department: summarize the physical flow of units and then compute the equivalent units of direct materials and conversion costs.

Arctic Springs produces premium bottled water. The preceding Short Exercises considered the first process in bottling premium water—Filtration. We now consider Arctic 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.
December data from the Bottling Department follow:

The Filtration Department completed and transferred out 160,000 liters at a total cost of \($148,000\).

Transcribed Image Text:

Beginning work in process inventory (45% of the way through the process) Transferred in from Filtration ........... Completed and transferred out to Finished Goods Inventory in December ........ 9,000 liters 160,000 liters ......... 147,000 liters Ending work in process inventory (85% of the way through the bottling process) ... 22,000 liters