5) Calculating conversion costs and unit cost (15 points).

Aqua Spring produces premium bottled water. Aqua Spring 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 150,000 liters:

Wages of workers operating filtration equipment $25,950

Manufacturing overhead allocated to filtration 20,050

Water 80,000

Aqua Spring had no beginning Work-in-Process Inventory in the Filtration Department in February.

REQUIREMENTS:

1) Compute the February conversion costs in the Filtration Department.

2) The Filtration Department completely processed 150,000 liters in February. What was the

filtration cost per liter?