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Problem no. 1 SPRING Company bottles mineral water. The water is filtered in Department 1 and then flows through to Department 2 where it is bottled. The company's only direct materials costs occurs in the bottling stage. The quantity schedules of Spring Company are as follows: Department 1 Units started in process 110,000 1 Units transferred to Department 80,000 Units in process, 2 end Department 2 30,000 Units received from Department 80,000 Units transferred to finished goods 61,400 Units in process, inventory end 18,600 Ending units in process in both departments are 72% complete as to conversion costs. Questions: 1. Direct materials equivalent units of production for Department 1 are? 2. Department 2 would have how many equivalent units of production, on the basis of a conversion cost computation?

Problem no. 1 SPRING Company bottles mineral water. The water is filtered in Department 1 and then flows through to Department 2 where it is bottled. The company's only direct materials costs occurs in the bottling stage. The quantity schedules of Spring Company are as follows: Department 1 Units started in process 110,000 1 Units transferred to Department 80,000 Units in process, 2 end Department 2 30,000 Units received from Department 80,000 Units transferred to finished goods 61,400 Units in process, inventory end 18,600 Ending units in process in both departments are 72% complete as to conversion costs. Questions: 1. Direct materials equivalent units of production for Department 1 are? 2. Department 2 would have how many equivalent units of production, on the basis of a conversion cost computation?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Problem no. 1 SPRING Company bottles mineral water. The water is filtered in Department 1 and then flows through to Department 2 where it is bottled. The company's only direct materials costs occurs in the bottling stage. The quantity schedules of Spring Company are as follows: Department 1 Units started in process 110,000 1 Units transferred to Department 80,000 Units in process, 2 end Department 2 30,000 Units received from Department 80,000 Units transferred to finished goods 61,400 Units in process, inventory end 18,600 Ending units in process in both departments are 72% complete as to conversion costs. Questions: 1. Direct materials equivalent units of production for Department 1 are? 2. Department 2 would have how many equivalent units of production, on the basis of a conversion cost computation?
Transcribed Image Text:Problem no. 1 SPRING Company bottles mineral water. The water is filtered in Department 1 and then flows through to Department 2 where it is bottled. The company's only direct materials costs occurs in the bottling stage. The quantity schedules of Spring Company are as follows: Department 1 Units started in process 110,000 1 Units transferred to Department 80,000 Units in process, 2 end Department 2 30,000 Units received from Department 80,000 Units transferred to finished goods 61,400 Units in process, inventory end 18,600 Ending units in process in both departments are 72% complete as to conversion costs. Questions: 1. Direct materials equivalent units of production for Department 1 are? 2. Department 2 would have how many equivalent units of production, on the basis of a conversion cost computation?
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