Fresh Springs
Bottling Department
Flow of Physical Units and Computation of Equivalent Units
	Flow of	Equivalent Units
	Physical	Transferred-	Direct	Conversion
Flow of Production	Units	in	Materials	Costs
Units to account for:
Beginning work in process, February 1	5,000
Transferred in	150,000
Total physical units to account for	155,000
Units accounted for:
Completed and transferred out during February	153,000	153,000	153,000	153,000
Ending work in process, February 28	2,000	2,000	0	1,600
Total physical units accounted for	155,000
Total equivalent units		155,000	153,000	154,600

Costs in beginning work			Costs added
in process inventory			during February
Transferred in	$750		Transferred in*	$131,000
Direct materials	0		Direct materials	32,130
Direct labour	630		Direct labour	33,300
Manufacturing overhead	2,478		Manufacturing overhead	22,340
Total beginning work in process			Total costs added
inventory as of February 1	$3,858		during February	$218,770
*The Filtration Department completed and transferred out 150,000 litres at a total cost of $131,000.

Fresh 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:

Fresh Springs
Bottling Department
Cost per Equivalent Unit
	Transferred-	Direct	Conversion
	in	Materials	Costs
Total costs to account for

Cost per equivalent unit