The following data set is used for S5-14 through S5-18: Crystal Springs Data Set: Filtration Department Crystal Springs produces premium bottled water. Crystal Springs 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 May, the filtration process incurs the following costs in processing 205,000 liters: Wages of workers operating the filtration equipment.... Wages of workers operating ozonation equipment. Manufacturing overhead allocated to filtration.. Water.......... $ 10,280 $ 11,500 $ 25,500 $118,900 Crystal Springs has no beginning inventory in the Filtration Department. pige mesin eging is im S5-14 Compute cost per liter (Learning Objective 1) Refer to the Crystal Springs Filtration Department Data Set. 1. Compute the May conversion costs in the Filtration Department. 2. If the Filtration Department completely processed 205,000 liters, what would be the average filtration cost per liter? 3. Now, assume that the total costs of the filtration process listed in the previous chart yield 165,000 liters that are completely filtered and ozonated, while the remaining 40,000 liters are only partway through the process at the end of May. Is the cost per completely filtered and ozonated liter higher, lower, or the same as in Requirement 2? Why?
The following data set is used for S5-14 through S5-18: Crystal Springs Data Set: Filtration Department Crystal Springs produces premium bottled water. Crystal Springs 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 May, the filtration process incurs the following costs in processing 205,000 liters: Wages of workers operating the filtration equipment.... Wages of workers operating ozonation equipment. Manufacturing overhead allocated to filtration.. Water.......... $ 10,280 $ 11,500 $ 25,500 $118,900 Crystal Springs has no beginning inventory in the Filtration Department. pige mesin eging is im S5-14 Compute cost per liter (Learning Objective 1) Refer to the Crystal Springs Filtration Department Data Set. 1. Compute the May conversion costs in the Filtration Department. 2. If the Filtration Department completely processed 205,000 liters, what would be the average filtration cost per liter? 3. Now, assume that the total costs of the filtration process listed in the previous chart yield 165,000 liters that are completely filtered and ozonated, while the remaining 40,000 liters are only partway through the process at the end of May. Is the cost per completely filtered and ozonated liter higher, lower, or the same as in Requirement 2? Why?
Chapter1: Financial Statements And Business Decisions
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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:The following data set is used for S5-14 through S5-18:
Crystal Springs Data Set: Filtration Department
Crystal Springs produces premium bottled water. Crystal Springs 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 May, the filtration process incurs the following costs in processing
205,000 liters:
Wages of workers operating the filtration equipment....
Wages of workers operating ozonation equipment...
Manufacturing overhead allocated to filtration.
Water......
$ 10,280
$ 11,500
$ 25,500
$118,900
Crystal Springs has no beginning inventory in the Filtration Department.
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S5-14 Compute cost per liter (Learning Objective 1)
Refer to the Crystal Springs Filtration Department Data Set.
1. Compute the May conversion costs in the Filtration Department.
2. If the Filtration Department completely processed 205,000 liters, what would be the
average filtration cost per liter?
3. Now, assume that the total costs of the filtration process listed in the previous chart yield
165,000 liters that are completely filtered and ozonated, while the remaining 40,000
liters are only partway through the process at the end of May. Is the cost per completely
filtered and ozonated liter higher, lower, or the same as in Requirement 2? Why?
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