Question
9) Clear Water Company produces premuim bottled water. In the second department, the bottling department, conversion costs are incurred evenly throughout the bottling process, but
9) Clear Water Company produces premuim bottled water. In the second department, the bottling department, conversion costs are incurred evenly throughout the bottling process, but packaging materials are not added until the end of the process. Costs in beginning work process inventory include transferred in costs of $1400, direct labor of $500, and , manufacturing overhead of $430. February data for the bottling department follow:
Beginning inventory, Jan. 31 (40% complete- 8000 (physical units), dollars 2300, transferredout, physical units150,000.
Production started:
Transferred in- 162,000 (physical units),dollars 132900
Direct materials dollars 33000
Conversion Costs:
direct labor- dollars 33500
manfacturing overhead- dollars
Total to account for- 170000 (physical units), 224700 (dollars)
Ending inventory, February 28 (70% complete)- 20000 (physical units)
Requirements:
R1-draw a time line
R2- compute the bottling department equivalent units for the month of February. use the weighted average method.
R3-Compute the cost per equivalent unit for February
R4- Assign the costs to units completed and transferred out and to ending inventory
R5- Prepare the journal entry to record the cost of units completed and transferred out
R6- post all transactions to the work in process inventory, bottling department T-account. What is the ending balance?
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