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Pure Spring Company produces premium bottled water. In the second department, the Bottling Department, conversion costs are incurred evenly throughout the bottling process, but packaging
Pure 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 $1,500, direct labor of $700, and manufacturing overhead of $330. March data for the Bottling Department follow: Pure Spring Company Work-in-Process Inventory-Bottling Month Ended March 31, 2024 Dollars Transferred In Direct Materials Direct Labor Manufacturing Overhead Total Costs Units Beginning inventory, Mar. 1 (40% complete) 9,000 $ 1,500 $ 700 $ 330 $ 2,530 Production started 166,000 135,000 $ 30,400 33,900 15,500 214,800 Transferred out 152,000 Ending inventory, Mar. 31 (70% complete) 23,000 COSTS In Materials Costs Costs Costs to account for: Beginning work-in-process $ 1,500 $ 0 $ Costs added during the period 135,000 30,400 1,030 $ 2,530 49,400 214,800 50,430 $ 217,330 168,100 Total costs to account for $ 136,500 $ 30,400 $ 152,000 Divided by: Total EUP 175,000 $ 0.78 $ 0.20 $ 0.30 Cost per equivalent unit Costs accounted for: Total costs accounted for
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