Continuation of S4-19: compute cost per equivalent unit in second department

(Learning Objective 4)

Refer to the Polar Springs Bottling Department Data Set and your answer to S4-19. 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. Your answer should look similar to Exhibit 4-13.

Polar Spring produces premium bottled water. The preceding Short Exercises considered Polar Spring’s first process—filtration. We now consider Polar Spring’s 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:

Transcribed Image Text:

Beginning work in process inventory (40% of the way through the process). 8,000 liters Transferred in from Filtration* 160,000 liters Completed and transferred out to Finished Goods Inventory in February....... 154,000 liters Ending work in process inventory (70% of the way through the bottling process).. 14,000 liters Costs in beginning work in process inventory Costs added during February Transferred in.... $1,760 Direct materials.................. 0 Transferred in* .............. Direct materials................. $136,000 30,800 Direct labor.......................... 600 Direct labor...................... 33,726 Manufacturing overhead.... 520 Manufacturing overhead.... 22,484 Total beginning work in Total costs added process inventory as of during February..... $223,010 February 1 $2,880