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Please provide answers to questions 1-6 Brita Ltd. produces premium bottled water. Aquafina purchases artesian water, stores the water in large tanks, and then runs

Please provide answers to questions 1-6

Brita Ltd. produces premium bottled water. Aquafina purchases artesian water, stores the water in large tanks, and then runs the water through two processes:

Filtration, where workers microfilter and ozonate the water

Bottling, where workers bottle and package the filtered water

During December, the filtration process incurs the following costs in processing 200,000 liters:

Wages of workers operating the filtration equipment

$11,100

Wages of workers operating ozonation equipment

$12,850

Manufacturing overhead allocated to filtration

$24,050

Water

$120,000

Please provide answers to questions 1-6

1. Compute the December conversion costs in the Filtration Department.

2. If the Filtration Department completely processed 200,000 liters, what would be the average filtration cost per liter?

3. Now, assume that the total costs of the filtration process listed in the previous chart yield 160,000 liters that are completely filtered and ozonated, while the remaining 40,000 liters are only partway through the process at the end of December. Is the cost per completely filtered and ozonated liter higher, lower, or the same as in question 2? Why?

At Aquafina, water is added at the beginning of the filtration process. Conversion costs are incurred evenly throughout the process, and in December, 160,000 liters have been completed and transferred out of the Filtration Department to the Bottling Department.

The 40,000 liters remaining in the Filtration Department's ending work in process inventory are 80% of the way through the filtration process. Assume no beginning inventories.

4. Complete the first two steps of the process costing procedure for the Filtration Department: summarize the physical flows of units and then compute the equivalent units of direct materials and conversion costs.

5. Complete Steps 3 and 4 of the process costing procedure: Summarize total costs to account for and then compute the cost per equivalent unit for both direct materials and conversion costs.

6. Prepare a schedule to complete step 5 of the process costing procedure to show the cost of the 160,000 liters completed and transferred out of the Filtration Department.

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