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 Steps 3 and 4 of the process costing procedure: Summarize total costs to account for and then compute the cost per equivalent unit for both direct materials and conversion costs. 3.Complete Step 5 of the process costing procedure: Assign costs to units completed and to units in ending inventory. What is the ending WIP balance on December 31?
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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
Water $120,000
Questions:
1.Complete the first two steps of the
2.Complete Steps 3 and 4 of the process costing procedure: Summarize total costs to account for and then compute the cost per equivalent unit for both direct materials and conversion costs.
3.Complete Step 5 of the process costing procedure: Assign costs to units completed and to units in ending inventory. What is the ending WIP balance on December 31?
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