Refer to the Fresh Springs Bottling Department Data Set and your answer to S5-19. 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.
Fresh Springs produces premium bottled water. The preceding Short Exercises considered the first process in bottling premium water - Filtration. We now consider Fresh 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.
February data from the Bottling Department follow:
Beginning work in process inventory
(40% of the way through the process)................................................................ 5,000 liters
Transferred in from Filtration......................................................................... 150,000 liters
Completed and transferred out to Finished Goods
Inventory in February.................................................................................... 153,000 liters
Ending work in process inventory
(80% of the way through the bottling process)................................................ 2,000 liters

The Filtration Department completed and transferred out 150,000 liters at a total cost of $131,000.

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Costs in beginning work in process inventory Transferred in Direct materials Direct labor Manufacturing overhead Total beginning work in process inventory as of February 1 Costs added during February $750 0 630 2.478 Transferred in Direct materials. Direct labor Manufacturing overhead Total costs added during February 131,000 32,130 33,300 22,340 ead... $218,770 $3,858