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Chill Springs produces premium bottled water. In the Bottling? Department, workers bottle the filtered water and pack the bottles into boxes. Conversion costs are incurred

Chill Springs produces premium bottled water. 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:

Costs in beginning workCosts added




in-process inventoryduring February




Transferred in$980
Transferred in*$133,000




Direct materials0
Direct materials32,130




Direct labor620
Direct labor33,200




Manufacturing overhead776
Manufacturing overhead22,310




Total beginning work in processTotal costs added




inventory as of February 1$2,376
during February$220,640




*The Filtration Department completed and transferred out 153,000 liters at a total cost of $133,000.


Chill Springs










Bottling Department









Assignment of Costs











Transferred-in
Direct

Conversion



Assign costs:Costs

Materials

Costs


Total

Completed and transferred out153,000x ($0.87+
$0.21+
$0.37)$221,850

Ending work in process inventory:








Transferred-in costs1,000x$0.87






870

Direct materials

0x$0.21



0

Conversion costs




800x$0.37
296

Total ending work in process inventory






1,166

Total costs accounted for







$223,016


Requirement 1. Prepare the journal entry to record the cost of units completed and transferred to finished goods. ?(Record debits? first, then credits. Explanations are not? required.)


Journal Entry

Date

Accounts

Debit

Credit





















Requirement 2. Post all transactions to the? "Work in Process

Inventorylong dash—?Bottling"

T-account and determine the ending balance. ?(Leave any unused cells? blank.)

Work in Process Inventory—Bottling

Bal. February 1




















Bal. February 28




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