Concept explainers
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
(Requirement 1 only)
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?
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