Cold Spring Company produces premium 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 in process inventory include transferred in costs of $3,600 and conversion costs of

$2,781. February data for the Bottling Department follow:

Cool Spring Company
Work in Process InventoryBottling
Month Ended February 28, 2011
		Physical			Physical
		Units	Dollars		Units	Dollars
	Beginning inventory, January 31 (60% complete)	6,000	$6,381	Transferred out	161,000	$ ?
	Production started:
	Transferred in	168,000	100,800
	Direct materials		35,420
	Conversion costs:
	Direct labor		30,720
	Manufacturing overhead		19,230
	Total to account for	174,000	192,551
	Ending inventory, February 28 (70% complete)	13,000	$ ?

Requirements

1.	Draw a time line.
2.	Compute the Bottling Department equivalent units for the month of February. Use the FIFO method.
3.	Compute the cost per equivalent unit for February.
4.	Assign the costs to units completed and transferred out and to Ending inventory.
5.	Prepare the journal entry to record the cost of units completed and transferred out.
6.	Post all transactions to the Work in process inventorylong dashBottling Department T-account. What is the ending balance?