Preparing production cost report, journalizing, second department Refreshing Water 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 $1,400, direct labor of $700, and manufacturing overhead of $330. March data for the Bottling Department follow: Requirements 1. Prepare a production cost report for the Bottling Department for the month of March. The company uses the weighted average method. 2. Prepare the journal entry to record the cost of units completed and transferred out. 3. Post all transactions to the Work-in-Process Inventory Bottling T-account. What is the ending balance? REFRESHING WATER COMPANY Work-in-Process Inventory-Bottling Month Ended March 31, 2013 Dollars Units Transferred In Direct Materials Direct Labor Manufacturing Overhead Total Costs 15,000 $1,400 $ 700 $ 330 $ 2,430 160,000 135,100 $ 30,000 Beginning inventory. Mar. 1(40% complete) Production started Transferied out Ending inventory, Mar. 31 (10% complete) 33,100 16,300 214,900 152,000 23,000