Question

data: 1

Pure Springs

Bottling Department

Cost per Equivalent Unit

Transferred-

Direct

Conversion

in

Materials

Costs

Beginning work in process, February 1

$3,300

$0

$1,290

Costs added during February

132,000

28,260

55,900

Total costs to account for

135,300

28,260

57,190

data: 2

Pure Springs
Bottling Department
Flow of Physical Units and Computation of Equivalent Units
	Flow of	Equivalent Units
	Physical	Transferred-	Direct	Conversion
Flow of Production	Units	in	Materials	Costs
Units to account for:
Beginning work in process, February 1	9,000
Transferred in	156,000
Total physical units to account for	165,000
Units accounted for:
Completed and transferred out during February	157,000	157,000	157,000	157,000
Ending work in process, February 28	8,000	8,000	0	6,400
Total physical units accounted for	165,000
Total equivalent units		165,000	157,000	163,400

Springs produces premium bottled water. In the Bottling​ Department, workers bottle the filtered water and pack the bottles into boxes. Conversion costs are incurred evenly throughout the bottling​ process, but packaging materials are not added until the end of the process. February data from the Bottling Department​ follow:

​(Complete Step 5 of the process costing​ procedure: assign costs to units completed and to units in ending inventory.

Pure Springs

Bottling Department

Assignment of Costs

Transferred-in

Direct

Conversion

Assign costs:

Costs

Materials

Costs

Total

Units

Cost

Units

Cost

Units

Cost

x (

+

+

)

Ending work in process inventory:

x

x

x

Answer 1

Cost per equivalent units
			Transferred	Material	Conversion
			In cost		cost
Total cost to account for			135300	28260	57190
Divide: Equivalent units			165000	157000	163,400
Cost per Equivalent unit			0.82	0.18	0.35
Assignment of cost			Transferred in cost			Material			Conversion			Total
			Units	Cost per EUP	Cost	Units	Cost per EUP	Cost	Units	Cost per EUP	Cost
Units completed and transferred out			157000	0.82	128740	157,000	0.18	28260	157000	0.35	54950	211950
Ending WIP inventory
Transfrred in cost			8000	0.82	6560
Material cost						0	0	0
Conversion cost									6400	0.35	2240	8800
Total			165000		135,300	157000		28260	163400		57190	220750