Pure Spring 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 $1,700, direct labor of $600, and manufacturing overhead of $900. March data for the Bottling Department follow: View the data. Read the requirements. Requirement 1. Prepare a production cost report for the Bottling Department for the month of March. The company uses the weighted-average method. (Complete all input fields. Enter a "0" for any zero balances. Round all cost per unit amounts the nearest cent and all other amounts to the nearest whole dollar. Abbreviation used: EUP = equivalent units of production.) UNITS Units to account for: . Total units to account for Units accounted for: Total units accounted for Pure Spring Company Production Cost Report - Bottling Department Month Ended March 31 Physical Transferred Units In Equivalent Units Direct Materials Conversion Costs Data Pure Spring Company Work-in-Process Inventory-Bottling Month Ended March 31 Beginning inventory, Mar. 1 (40% complete) Production started Transferred out Ending inventory, Mar. 31 (70% complete) Units Transferred In 19,000 $ 166,000 158,000 27,000 Direct Materials 1,700 146,300 $ 25,280 $ Dollars Direct Labor Manufacturing Overhead 600 $ 33,300 900 $ 20,039 Total Costs 3,200 224,919
Pure Spring 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 $1,700, direct labor of $600, and manufacturing overhead of $900. March data for the Bottling Department follow: View the data. Read the requirements. Requirement 1. Prepare a production cost report for the Bottling Department for the month of March. The company uses the weighted-average method. (Complete all input fields. Enter a "0" for any zero balances. Round all cost per unit amounts the nearest cent and all other amounts to the nearest whole dollar. Abbreviation used: EUP = equivalent units of production.) UNITS Units to account for: . Total units to account for Units accounted for: Total units accounted for Pure Spring Company Production Cost Report - Bottling Department Month Ended March 31 Physical Transferred Units In Equivalent Units Direct Materials Conversion Costs Data Pure Spring Company Work-in-Process Inventory-Bottling Month Ended March 31 Beginning inventory, Mar. 1 (40% complete) Production started Transferred out Ending inventory, Mar. 31 (70% complete) Units Transferred In 19,000 $ 166,000 158,000 27,000 Direct Materials 1,700 146,300 $ 25,280 $ Dollars Direct Labor Manufacturing Overhead 600 $ 33,300 900 $ 20,039 Total Costs 3,200 224,919
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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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Transcribed Image Text:Pure Spring 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 $1,700, direct labor of $600, and manufacturing overhead of $900. March data for the Bottling Department follow:
View the data.
Read the requirements.
Requirement 1. Prepare a production cost report for the Bottling Department for the month of March. The company uses the weighted-average method. (Complete all input fields. Enter a "0" for any zero balances. Round all cost per unit amounts to
the nearest cent and all other amounts to the nearest whole dollar. Abbreviation used: EUP = equivalent units of production.)
UNITS
Units to account for:
Total units to account for
Units accounted for:
Total units accounted for
Pure Spring Company
Production Cost Report - Bottling Department
Month Ended March 31
Physical Transferred
Units
In
Equivalent Units
Direct
Materials
Conversion
Costs
Data
Pure Spring Company
Work-in-Process Inventory-Bottling
Month Ended March 31
Beginning inventory, Mar. 1 (40% complete)
Production started
Transferred out
Ending inventory, Mar. 31 (70% complete)
Units
Dollars
Direct
Transferred
Direct Manufacturing
Materials Labor
Overhead
In
19,000 $
166,000
158,000
27,000
1,700
146,300 $
25,280
$
600 $
33,300
900
20,039
$
Total
Costs
3,200
224,919
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