
Concept explainers
Calculating conversion costs and unit cost
Russia Spring produces premium bottled water. Russia Spring 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 150.000 liters:
Wages of workers operating filtration equipment $ 19,950
Manufacturing
Water 50,000
Russia Spring had no beginning Work-in-Process Inventory in the filtration Department in February.
Requirements
1. Compute the February conversion costs in the Filtration Department.
2- The Filtration Department completely processed 150,000 liters in February. What
was the filtration cost per liter?

Want to see the full answer?
Check out a sample textbook solution
Chapter 20 Solutions
Horngren's Accounting, The Financial Chapters (11th Edition) - Standalone Book
- Question: 12 - A machine costing $400,000 has a salvage value of $40,000 and a useful life of 12 years. They expect the machine to produce 600,000 units. In year 1, it produced 50,000 units and in year 2, 35,000 units. Using the units of activity method, what is the depreciation expense in year 2?arrow_forwardWhat adjusting entry should be recorded on December 31 ?arrow_forwardhello tutor please help me accounting questionsarrow_forward
- TechCo uses the straight-line method for depreciation. Assets purchased between the 1st and 15th of the month are depreciated for the entire month; assets purchased after the 15th are treated as though they were acquired the following month. On June 18, 20X2, TechCo purchases a machine for $15,000 that it expects to last for 6 years; TechCo expects the machine to have a residual value of $3,000. What is the 20X2 depreciation expense for the machine?helparrow_forwardTechCo uses the straight-line method for depreciation. Assets purchased between the 1st and 15th of the month are depreciated for the entire month; assets purchased after the 15th are treated as though they were acquired the following month. On June 18, 20X2, TechCo purchases a machine for $15,000 that it expects to last for 6 years; TechCo expects the machine to have a residual value of $3,000. What is the 20X2 depreciation expense for the machine?arrow_forwardBayview Resort has sales of $850,000 and a profit margin of 8%. The annual depreciation expense is $95,000. What is the amount of the operating cash flow if the company has no long-term debt?arrow_forward
- Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
