Spring WaterSpring Water

Company produces premium bottled water. In the second department, the Bottling Department, conversion costs are incurred evenly throughout the bottlingprocess, 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 comma 600$1,600,

direct labor of

$ 600$600,

and manufacturing overhead of

$ 530$530.

FebruaryFebruary

data for the Bottling Department follow:

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Requirement 1. Prepare a production cost report for the Bottling Department for the month of

FebruaryFebruary.

Use the weighted-average method. (Complete all answer boxes. Enter a "0" for any zero balances. Round all cost per unit amounts to the nearest cent and all other amounts to the nearest whole dollar. Abbreviation used: EUP = equivalent units of production.)

Spring Water Company
Production Cost Report - Bottling Department
Month Ended February 29
							Equivalent Units
					Whole		Transferred		Direct	Conversion
UNITS					Units		In		Materials	Costs
Units to account for:
Beginning work-in-process					17,000
Transferred in					163,000
Total units to account for					180,000
Units accounted for:
Ending work-in-process					25,000		25,000		0	17,500
Completed and transferred out					155,000		155,000		155,000	155,000
Total units accounted for					180,000		180,000		155,000	172,500
		Transferred	Direct	Conversion		Total
COSTS		In	Materials	Costs		Costs
Costs to account for:
Beginning work-in-process		$1,600	$0	$1,130		$2,730
Costs added during the period		137,000	27,900	60,970		225,870
Total costs to account for		$138,600	$27,900	$62,100		$228,600
Divided by: Total EUP		180,000	155,000	172,500
Cost per equivalent unit		$0.77	$0.18	$0.36		$1.31

Costs accounted for:
Completed and transferred out
Ending work-in-process
Total costs accounted for

Spring Water Company

Work-in-Process InventoryBottling

Month Ended February 29, 2016

Dollars

Transferred

Direct

Direct

Manufacturing

Units

In

Materials

Labor

Overhead

Total Costs

Beginning inventory,

Feb. 1 (40% complete)

17,000

$1,600

$600

$530

$2,730

Production started

163,000

137,000

$27,900

33,500

27,470

225,870

Transferred out

155,000

Ending inventory,

Feb. 29 (70% complete)

25,000