Refer to the Cold Springs Filtration Department Data Set.
1. Compute the November conversion costs in the Filtration Department.
2. If the Filtration Department completely processed 225,000 liters, what would be the average filtration cost per liter?
3. Now, assume that the total costs of the filtration process listed in the previous chart yield 150,000 liters that are completely filtered and ozonated, while the remaining 75,000 liters are only partway through the process at the end of November. Is the cost per completely filtered and ozonated liter higher, lower, or the same as in Requirement 2? Why?
Cold Springs produces premium bottled water. Cold Springs purchases artesian water, stores the water in large tanks, and then runs the water through two processes:
• Filtration, where workers microfilter and ozonate the water
• Bottling, where workers bottle and package the filtered water
During November, the filtration process incurs the following costs in processing 225,000 liters:
Wages of workers operating the filtration equipment................................ $ 12,800
Wages of workers operating ozonation equipment.................................... $ 14,400
Manufacturing overhead allocated to filtration......................................... $ 38,050
Water......................................................................................................... $ 148,500
Cold Springs has no beginning inventory in the Filtration Department.