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Russia Spring produces premium bottled water. Russia Spring purchases artesian water, stores the water in large tanks, and then runs the water through two processes:
Russia Spring produces premium bottled water. Russia Spring purchases artesian water, stores the water in large tanks, and then runs the water through two processes: filtration and bottling. At Russia Spring, water is added at the beginning of the filtration process. Conversion costs are added evenly throughout the process. During February, the filtration process incurred the following costs in processing liters:
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Now assume that in February, liters were completed and transferred out of the Filtration Department and into the Bottling Department.
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Compute the equivalent units of production for direct materials and conversion costs for the Filtration Department.
tabletableRussia SpringProduction Cost Report Filtration Department PartialMonth Ended February tablePhysicalUnitsEquivalent UnitsUNITStableDirectMaterialstableConversionCostsUnits accounted for:Completed and transferred outEnding workinprocessTotal units accounted for,,,
Abrey, Inc. has the following cost data for Product and unit product cost using variable costing when production is units, units, and units.
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Data
Begin by selecting the labels and computing the contribution margin for scenario a and then compute the contribution margin for scenario b and c
tableVariable costing,aNet Sales Revenue,Total Variable Costs,Contribution Margin,
tableDirect materials,$ per unitDirect labor, per unitVariable manufacturing overhead, per unitFixed manufacturing overhead, per year
Unit product cost data
Requirements
table units, units, unitstableDirect materialsDirect laborVariable manufacturing overhead$$$$$$
Product X sells for $ per unit. Assume no beginning inventories. Calculate the contribution margin using variable costing when Abrey, Inc.:
a Produces and sells units.
b Produces units and sells units.
c Produces units and sells units.
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