Spring Fresh produces premium bottled water. Spring Fresh purchases artesian water, stores the water in large tanks, and then runs the water through two processes: filtration and bottling. During February, the filtration process incurred the following costs in processing 200,000 liters: Spring Fresh had no beginning Work-in-Process Inventory in the Filtration Department in February and uses the weighted-average method. Requirements 1. Compute the February conversion costs in the Filtration Department. 2. The Filtration Department completely processed 200,000 liters in February. What was the filtration cost per liter?
Spring Fresh produces premium bottled water. Spring Fresh purchases artesian water, stores the water in large tanks, and then runs the water through two processes: filtration and bottling. During February, the filtration process incurred the following costs in processing 200,000 liters: Spring Fresh had no beginning Work-in-Process Inventory in the Filtration Department in February and uses the weighted-average method. Requirements 1. Compute the February conversion costs in the Filtration Department. 2. The Filtration Department completely processed 200,000 liters in February. What was the filtration cost per liter?
Solution Summary: The author explains how to calculate conversion costs for Filtration Department. Conversion costs include direct labour costs and factory overhead costs.
Spring Fresh produces premium bottled water. Spring Fresh purchases artesian water, stores the water in large tanks, and then runs the water through two processes: filtration and bottling.
During February, the filtration process incurred the following costs in processing 200,000 liters:
Spring Fresh had no beginning Work-in-Process Inventory in the Filtration Department in February and uses the weighted-average method.
Requirements
1. Compute the February conversion costs in the Filtration Department.
2. The Filtration Department completely processed 200,000 liters in February. What was the filtration cost per liter?
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