Polar 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. May data from the Bottling Department follow:

1.	Prepare the journal entry to record the cost of units completed and transferred to finished goods.
2.	Post all transactions to the "Work in Process Inventorylong dashBottling" T-account. What is the ending balance?

Costs in beginning work in process inventory:

Transferred in. . . . . . . . . . . . . . . . . . . .

$1,650

Direct materials. . . . . . . . . . . . . . . . . . .

0

Direct labor. . . . . . . . . . . . . . . . . . . . . .

550

Manufacturing overhead. . . . . . . . . . . . .

570

Total beginning work in process

Total costs added

inventory as of May 1. . . . . . . . . .

$2,770

Costs added during May:

Transferred in. . . . . . . . . . . . . . . . . . . .

$136,000

Direct materials. . . . . . . . . . . . . . . . . . .

30,800

Direct labor. . . . . . . . . . . . . . . . . . . . . .

33,726

Manufacturing overhead. . . . . . . . . . . . .

22,484

Total costs added during May:

$223,010

*The Filtration Department completed and transferred out 160,000 liters at a total cost of $136,000.

Polar Springs
Bottling Department
Assigning Costs
		Transferred-	Direct	Conversion
		in	Materials	Costs	Total
	Completed and transferred out:
	Equivalent units completed and transferred out	154,000	154,000	154,000
	Multiplied by: Cost per equivalent unit	$0.82	$0.25	$0.35
	Costs assigned to units completed and transferred out	$126,280	$38,500	$53,900	$218,680
	Ending work in process:
	Equivalent units in ending work in process, May 31	14,000	0	11,200
	Multiplied by: Cost per equivalent unit	$0.82	$0.25	$0.35
	Costs assigned to units in ending work in process, May 31	$11,480	$0	$3,920	15,400
	Total costs accounted for				$234,080

1. Prepare the journal entry to record the cost of units completed and transferred to finished goods. (Record debits first, then credits. Exclude explanations from any journal entries.)

Journal Entry

Date

Accounts

Debit

Credit

2. Post all transactions to the "Work in Process Inventorylong dashBottling" T-account. What is the ending balance?

Work in Process InventoryBottling