Chapter 20, Problem S20.5SE

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 overhead allocated to filtration 22,050

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?