We now consider Brita Ltd. 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 is given below:

Beginning work in process inventory (40% of the way through the process) 8,000 liters

Transferred in from Filtration 160,000 liters

Completed and transfer red out to Finished Goods Inventory in

December 154,000 liters

Ending work in process inventory (70% of the way through the bottling

process) 22,000 liters

The Filtration Department completed and transferred out 160,000 liters at a total cost of $136,000.

Costs in beginning work in process inventory Costs added during December

Transferred in $1,760 Transferred in $136,000

Direct materials $0 Direct materials $30,800

Direct labor $600 Direct labor $33, 726

Mfg overhead $520 Mfg overhead $22,484

Total beginning WIP on Dec 1 $2880 Total costs added in Dec $223,010

8. 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.

9. Complete Steps 3 and 4 of the process costing procedure: Summarize total costs to account for and then compute the cost per equivalent unit for both direct materials and conversion costs.

10. Complete Step 5 of the process costing procedure: Assign costs to units completed and to units in ending inventory.

11. What is the ending WIP balance on December 31?