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Arctic Springs produces premium bottled water. Arctic SpringsArctic Springs purchases artesian? water, stores the water in large? tanks, and then runs the water through two?

Arctic Springs produces premium bottled water. Arctic SpringsArctic Springs purchases artesian? water, stores the water in large? tanks, and then runs the water through two? processes: filtration and bottling. At Arctic SpringsArctic Springs?, water is added at the beginning of the filtration process. Conversion costs are added evenly throughout the process. During? February, the filtration process incurred the following costs in processing 220,000 ?litres:

??

Wages of workers operating the filtration equipment $12,500
Wages of workers operating ozonation equipment 16,500
Manufacturing overhead allocated to filtration 24,050
Water 140,000
Arctic Springs
Filtration Department
Flow of Physical Units and Computation of Equivalent Units
Flow of Equivalent Units
Physical Direct Conversion
Flow of Production Units Materials Costs
Units to account for:
Beginning work in process, February 1 0
Started in production during February 220,000
Total physical units to account for 220,000
Units accounted for:
Completed and transferred out during February 135,000 135,000 135,000
Ending work in process, February 28 85,000 85,000 68,000
Total physical units accounted for 220,000
Total equivalent units 220,000 203,000

Arctic Springs

Filtration Department

Cost per Equivalent Unit

Direct

Conversion

Flow of Production

Materials

Costs

Total costs to account for

Cost per equivalent unit

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