Great North Waters produces the highest quality bottled water in the country. The company purchases water from a local quarry, stores the water in large tanks, and then runs the water through two processes: filtration and bottling. The water is added at the beginning of the filtration process. Conversion costs are added evenly throughout the process. Assume that in February 80,000 liters were completed and transferred out of the Filtration Department into the Bottling Department. The 70,000 liters remaining in Filtration's ending Work-in-Process Inventory were 80% of the way through the filtration process. What is the equivalent units of production for conversion costs? A) Started and Completed: 70,000; Work-in-Process: 70,000 B Started and Completed: 56,000; Work-in-Process: 80,000 D Started and Completed: 80,000; Work-in-Process: 56,000 Started and Completed: 80,000; Work-in-Process: 70,000

Great North Waters produces the highest quality bottled water in the country. The company purchases water from a local quarry, stores the water in large tanks, and then runs the water through two processes: filtration and bottling. The water is added at the beginning of the filtration process. Conversion costs are added evenly throughout the process. Assume that in February 80,000 liters were completed and transferred out of the Filtration Department into the Bottling Department. The 70,000 liters remaining in Filtration's ending Work-in-Process Inventory were 80% of the way through the filtration process. What is the equivalent units of production for conversion costs? A) Started and Completed: 70,000; Work-in-Process: 70,000 B Started and Completed: 56,000; Work-in-Process: 80,000 D Started and Completed: 80,000; Work-in-Process: 56,000 Started and Completed: 80,000; Work-in-Process: 70,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Helsinki Inc. produces premium bottled water. Helsinki purchases artesian water, stores the water in large tanks, and then runs the water through two processes: Filtration, where workers microfilter and ozonate the water Bottling, where workers bottle and package the filtered water During December, the filtration process incurs the following costs in processing 200,000 liters: Wages of workers operating the filtration equipment $11,100 Wages of workers operating ozonation equipment $12,850 Manufacturing overhead allocated to filtration $24,050 Water $120,000 Questions: 1.Complete the first two steps of the process costing procedure for the Bottling Department: summarize the physical flow of units and then compute the equivalent units of direct materials and conversion costs. 2.Complete…
Helsinki Inc. produces premium bottled water. Helsinki purchases artesian water, stores the water in large tanks, and then runs the water through two processes: Filtration, where workers microfilter and ozonate the water Bottling, where workers bottle and package the filtered water During December, the filtration process incurs the following costs in processing 200,000 liters: Wages of workers operating the filtration equipment $11,100 Wages of workers operating ozonation equipment $12,850 Manufacturing overhead allocated to filtration $24,050 Water $120,000 We now consider Helsinki's second process-Bottling. 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. December data from the Bottling Department is given below: Beginning work in process inventory (40% of the way through the process) 9,000…
Delightful Winery produces bottled wines for the hospitality industry in a four-stage process – Pumping, Filtration, Filling and Capping. After leaving the Capping Department, the bottled wines are packaged and sent to the Finished Goods warehouse for shipment to customers. The following data relates to the Filling Department for the month of June during which 4,000 bottled wines valued at $2,200,000 were transferred from the Filtration Department to the Filling Department. Other production costs incurred during the month are summarized as follows: Direct Materials Added Direct Manufacturing Wages Manufacturing Overhead $342,000 $851,200 $410,400 Process inspection occurs during the process and normally no losses are expected at this stage. However, during the month 10% of the bottled wines transferred into the Filling Department were rejected at inspection. Rejected units from this department are sold as scrap at $750 per bottle. These units had reached the following…
Helsinki Inc. produces premium bottled water. Helsinki purchases artesian water, stores the water in large tanks, and then runs the water through two processes: Filtration, where workers microfilter and ozonate the water Bottling, where workers bottle and package the filtered water During December, the filtration process incurs the following costs in processing 200,000 liters: Wages of workers operating the filtration equipment $11,100 Wages of workers operating ozonation equipment $12,850 Manufacturing overhead allocated to filtration $24,050 Water $120,000 QUESTIONS: 1. Now, assume that the total costs of the filtration process listed in the previous chart yield 160,000 liters that are completely filtered and ozonated, while the remaining 40,000 liters are only partway through the process at the end of December. Is the cost per completely filtered and ozonated liter higher, lower, or the same as in question 2? Why? At Helsinki, water is added at the beginning of the filtration…
Helsinki Inc. produces premium bottled water. Helsinki purchases artesian water, stores the water in large tanks, and then runs the water through two processes: Filtration, where workers microfilter and ozonate the water Bottling, where workers bottle and package the filtered water During December, the filtration process incurs the following costs in processing 200,000 liters: Wages of workers operating the filtration equipment $11,100 Wages of workers operating ozonation equipment $12,850 Manufacturing overhead allocated to filtration $24,050 Water $120,000 Question: Compute the December conversion costs in the Filtration Department. If the Filtration Department completely processed 200,000 liters, what would be the average filtration cost per liter? Now, assume that the total costs of the filtration process listed in the previous chart yield 160,000 liters that are completely filtered and ozonated, while the remaining 40,000 liters are only partway through the process at the end…
Helsinki Inc. produces premium bottled water. Helsinki purchases artesian water, stores the water in large tanks, and then runs the water through two processes: Filtration, where workers microfilter and ozonate the water Bottling, where workers bottle and package the filtered water During December, the filtration process incurs the following costs in processing 200,000 liters: Wages of workers operating the filtration equipment $11,100 Wages of workers operating ozonation equipment $12,850 Manufacturing overhead allocated to filtration $24,050 Water $120,000 Costs in beginning work in process inventory Costs added during December Transferred in $1,760 Transferred in $136,000 Direct materials $0 Direct materials $30,800 Direct labor $600 Direct labor $33, 726 Mfg overhead $520 Mfg overhead $25,742 Total beginning WIP on Dec 1 $2880 Total costs added in Dec $226,268 question: 1. Use the same schedule above to show the cost of 40,000 liters remaining in the Filtration Department's…
Delightful Winery produces bottled wines for the hospitality industry in a four-stage process –Pumping, Filtration, Filling and Capping. After leaving the Capping Department, the bottled wines arepackaged and sent to the Finished Goods warehouse for shipment to customers.The following data relates to the Filling Department for the month of June during which 4,000 bottledwines valued at $2,200,000 were transferred from the Filtration Department to the Filling Department.Other production costs incurred during the month are summarized as follows:Direct Materials AddedDirect Manufacturing WagesManufacturing Overhead $342,000$851,200$410,400 Process inspection occurs during the process and normally no losses are expected at this stage.However, during the month 10% of the bottled wines transferred into the Filling Department wererejected at inspection. Rejected units from this department are sold as scrap at $750 per bottle.These units had reached the following degree of completion:Transfer…
Delightful Winery produces botted wines for the hospitality industry in a four-stage process - Pumping, Filtration, Filling and Capping. After leaving the Capping Department, the bottled wines are packaged and sent to the Finished Goods warehouse for shipment to customers. The following data relates to the Filling Department for the month of June during which 4,000 botted wines valued at $2,200,000 were transferred from the Filtration Department to the Filling Department. Other production costs incurred during the month are summarized as follows: Direct Materials Added Direct Manufacturing Wages Manufacturing Overhead $342,000 $851,200 $410,400 Process inspection occurs during the process and normally no losses are expected at this stage. However, during the month 10% of the botted wines transferred into the Filling Department were rejected at inspection. Rejected units from this department are sold as scrap at $750 per bottle. These units had reached the following degree of…
Blue Lake Water Company has two departments, Purifying and Bottling. The Bottling Department received 76,000 liters from the Purifying Department. During the period, the Bottling Department completed 74,000 liters, including 3,000 liters of work in process at the beginning of the period. The ending work in process was 5,000 liters. How many liters were started and completed during the period?
Fasani produces premium bottled water. Fasani purchases artesian water, stores the water in large tanks, and then runs the water through two processes: Filtration, where workers microfilter and ozonate the water Bottling, where workers bottle and package the filtered water During December, the filtration process incurs the following costs in processing 200,000 liters: Wages of workers operating the filtration equipment $11,100 Wages of workers operating ozonation equipment $12,850 Manufacturing overhead allocated to filtration $24,050 Water $120,000 Compute the December conversion costs in the Filtration Department. If the Filtration Department completely processed 200,000 liters, what would be the average filtration cost per liter? Now, assume that the total costs of the filtration…
Mountain Springs Water Company has two departments, Purifying and Bottling. The Bottling Department received 64,280 liters from the Purifying Department. During the period, the Bottling Department completed 61,170 liters, including 2,700 liters of work in process at the beginning of the period. The ending work in process had 5,810 liters. How many liters were started and completed during the period?
Mountain Springs Water Company has two departments, Purifying and Bottling. The Bottling Department received 67,000 liters from the Purifying Department. During the period, the Bottling Department completed 65,000 liters, including 3,000 liters of work in process at the beginning of the period. The ending work in process had 5,000 liters. How many liters were started and completed during the period? ____________________ liters started and completed