1.6 (12 marks) Process Costing - Chapter 6 Fiji Water has been extracting and packaging the delicate waters of Fiji for dozens of years. As Fiji has grown bigger and bigger and evolved to a more advanced accounting process, they have opted to follow process costing. Consider the following information for the month of October: - Fiji has two main processes, extraction/purifying and bottling/packaging. - For October, there was an opening balance of 120,000 units for the extraction/purifying department. These units were 100% complete for direct materials but only 75% complete for conversion costs. - During the month, 260,000 units were started in production and a total of 340,000 units were transferred out to the secondary division, bottling/packaging. - The remaining WIP was found to be 100% complete for direct materials and only 30% complete for conversion. - Opening WIP costs for the first processing division was 48,000 and 58,500 for direct materials and conversion cost, respectively. - Added cost for the first division for the month was 104,000 and 170,300 for direct materials and conversion cost, respectively. Requirements Complete all 5 steps for process costing. How much costs were transferred to the secondary division? How much costs were left in WIP? Consider the additional information: - The secondary division had no units in inventory at the beginning of the month. and ended the month with 45,000 units in WIP at 75% complete. - The secondary division has a direct material cost of $0.30 per unit which typically occurs at the end of the production process. The conversion costs are $0.15 per unit and they occur evenly throughout the production process. Requirements - Complete all 5 steps for process costing for the secondary division (packaging/bottling). How much costs were transferred to the finished goods? How much costs were left in WIP