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

Chill SpringsChill 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 work Costs added
in process inventory during February
Transferred in $980 Transferred in* $133,000
Direct materials 0 Direct materials 32,130
Direct labour 620 Direct labour 33,200
Manufacturing overhead 776 Manufacturing overhead 22,310
Total beginning work in process Total costs added
inventory as of February 1 $2,376 during February $220,640
*The Filtration Department completed and transferred out 153,000 litres 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 out 153,000 x ( $0.87 + $0.21 + $0.37 ) $221,850
Ending work in process inventory:
Transferred-in costs 1,000 x $0.87 870
Direct materials 0 x $0.21 0
Conversion costs 800 x $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 InventoryBottling

Bal. February 1

Bal. February 28

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