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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Kindly answer please with complete solution
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?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education