Costs in beginning work			Costs added
in process inventory			during February
Transferred in . . . . . . . . . . . . . . . . . . . . . . .	$3,300		Transferred in* . . . . . . . . . . . . . . . .	$132,000
Direct materials . . . . . . . . . . . . . . . . . . . . . .	0		Direct materials . . . . . . . . . . . . . . . .	28,260
Direct labour . . . . . . . . . . . . . . . . . . . . . . . .	590		Direct labour . . . . . . . . . . . . . . . . . .	33,600
Manufacturing overhead . . . . . . . . . . . . . .	72		Manufacturing overhead . . . . . . . . .	22,300
Total beginning work in process			Total costs added
inventory as of February 1 . . . . . . .	$3,962		during February . . . . . . . . . .	$216,160
*The Filtration Department completed and transferred out 156,000 litres at a total cost of $132,000.

Beginning work in process inventory (40% of the way through the process)		9,000	litres
Transferred in from Filtration*		156,000	litres
Completed and transferred out to Finished Goods Inventory in February		157,000	litres
Ending work in process inventory (80% of the way through the bottling process)		8,000	litres
*Cold Springs's Filtration Department completed and transferred out 156,000 litres at a total cost of $132,000.

Cold srings produces premium bottled water. Cold Springs purchases artesian water, stores the water in large tanks, and then runs the water through two processes: times

Filtration, where workers microfilter and ozonate the water times Bottling, where workers bottle and package the filtered water 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:

Requirement 1. Fill in the time line for the bottling process.

Start							Complete		Complete

Requirement 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. (For accounts with a zero balance, make sure to enter "0" in the appropriate cell.)

Cold Springs
Bottling Department
Flow of Physical Units and Computation of Equivalent Units
	Flow of	Equivalent Units
	Physical	Transferred-	Direct	Conversion
Flow of Production	Units	in	Materials	Costs
Units to account for:
Units accounted for:
Total equivalent units