Refer to the Crystal Springs Bottling Department Data Set.

1. Draw a time line.

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.

Crystal Springs Data Set: Bottling Department

Crystal Springs produces premium bottled water. The preceding Short Exercises ­considered the first process in bottling premium water— Filtration. We now consider Crystal Springs 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.

May data from the Bottling Department follow:

Beginning work in process inventory

(40% of the way through the process).......................................................7,000 liters

Transferred in from Filtration.................................................................... 165,000 liters

Completed and transferred out to Finished Goods

Inventory in May..................................................................................... 152,000 liters

Ending work in process inventory

(80% of the way through the bottling process)........................................ 20,000 liters

The Filtration Department completed and transferred out 165,000 liters at a total cost of $135,000.

Transcribed Image Text:

Costs in beginning worlk in process inventory Costs added during May Transferred in... Direct materials Direct labor Manufacturing overhead.... Total beginning work itn $135,000 28,748 33,800 22.400 $2,780 Transferred in 0 Direct materials. 560 Direct labor. 1,992 Manufacturing overhead... Total costs added during February process inventory as of May 1 $5,332 $219,948