Question

High Springs
Filtration Department
Assignment of Costs
	Direct Materials			Conversion Costs				Total
Completed and transferred out	170,000	x (	$0.64	+	$0.23	)		$147,900
Ending work in process inventory:
Direct materials	55,000	x	$0.64					35,200
Conversion Costs					44,000	x	$0.23	10,120
Total cost of ending work in process inventory								45,320
Total cost accounted for								$193,220

Wages of workers operating the filtration equipment	$12,220
Wages of workers operating ozonation equipment	11,000
Manufacturing overhead allocated to filtration	26,000
Water	144,000

High Springs produces premium bottled water. High Springs purchases artesian​ water, stores the water in large​ tanks, and then runs the water through two​ processes: filtration and bottling. At High Springs​, water is added at the beginning of the filtration process. Conversion costs are added evenly throughout the process. High Springs has no beginning inventories. During​ February, the filtration process incurred the following costs in processing 225,000 ​litres:

Requirements  

1.	Record the journal entry to transfer the cost of the 170,000 litres completed and transferred out of the Filtration Department and into the Bottling Department.
2.	Record all of the transactions in the​ "Work in Process Inventorylong dash—​Filtration" ​T-account.

Requirement 1. Record the journal entry to transfer the cost of the 170,000

litres completed and transferred out of the Filtration Department and into the Bottling Department. ​(Record debits​ first, then credits. Explanations are not​ required.)

Journal Entry

Date

Accounts

Debit

Credit

Requirement 2. Record all of the transactions in the​ "Work in Process Inventorylong dash—​Filtration" ​T-account. Post the transactions involving the costs incurred to the Filtration Department to the​ T-account and determine the ending balance. ​(For entries with a zero​ balance, make sure to enter​ "0" in the appropriate cell. Leave unused cells​ blank.)

Work in Process inventory- filteration

Bal, February 1

Bal, February 28

Answer 1

1	Journal Entry
	Date	Accounts	Debit	Credit
		Work in process - Bottling	$147,900
		Work in process - Filtration		$147,900
		(To record the transfer of filtartion cost into bottling)
2		Work in Process inventory- filteration
		Bal, February 1	-
		Direct material	144,000	147,900	Transferred Out
		Wages Payable - Filtration	12,220
		Wages Payable - ozonation	11,000
		Manufacturing Overhead	26,000
		Bal, February 28	45,320