Fresh Spring produces premium bottled water. i (Click the icon to view the additional information.) During February, the filtration process incurred the following costs in processing 180,000 liters: (Click the icon to view the costs.) Fresh Spring Production Cost Report - Filtration Department (Partial) Month Ended February 28 UNITS Units accounted for: Completed and transferred out Ending work-in-process Total units accounted for More info Physical Units Equivalent Units Conversion Costs Direct Materials - X G More info Now assume that in February, 135,000 liters were completed and transferred out of the Filtration Department and into the Bottling Department. i (Click the icon to view the additional information.) Compute the equivalent units of production for direct materials and conversion costs for the Filtration Department. The 45,000 liters remaining in Filtration's ending Work-in-Process Inventory were 80% of the way through the filtration process. Fresh Spring has no beginning inventories. Print Data table Done X - X
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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From the Given Question
Liters were completed and Transferred out of Filtration department = 135,000 liters
Ending Work in process = 45,000 liters
Ending process are 100% completed in direct material (water) and 80% complete in conversion costs.
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