Refer to Short Exercise S20A-15. At Spring Fresh, water is added at the beginning of the filtration process. Conversion costs are added evenly throughout the process. Now assume that in February, 130,000 liters were completed and transferred out of the Filtration Department into the Bottling Department. The 70,000 liters remaining in Filtration's ending Work-in-Process Inventory were 80% of the way through the filtration process. Recall that Spring Fresh has no beginning inventories.
Compute the equivalent units of production for direct materials and conversion costs for the Filtration Department using the FIFO method.
Refer in Short Exercise S20A-15,
Spring Fresh produces premium bottled water. Spring Fresh purchases artesian water, stores the water in large tanks, and then runs the water through two processes: filtration and bottling.
During February, the filtration process incurred the following costs in processing 200,000 liters:
Wages of workers operating filtration equipment ................ $ 34,950
Manufacturing overhead allocated to filtration ..................... 19,050
Water .................................................................... 110,000
Spring Fresh had no beginning Work-in-Process Inventory in the Filtration Department in February.