Cold Spring produces premium bottle water. Cold Spring purchases artesian water, stores the water in large tanks, and then runs the water through 2 processess; filtration and bottling. During February, the filtration proces incurred the following costs inprocessing 190,000 liters:

Wages of workers operating the filtration equipment - $21,950

Manufacturing overhead allocated to filtration - $25,050

Water-$ 150,000

Cold Spring had no beginning inventory in the filtration department in february.Ã‚

Requirements:

R1) Compute the February Conversion costs in the filtration department.

R2) The filtration department completely processed 190,000 liters in February. What was the filtration cost per liter?

Question

Business

Chicken Legs

16 February, 23:19

Cold Spring produces premium bottle water. Cold Spring purchases artesian water, stores the water in large tanks, and then runs the water through 2 processess; filtration and bottling. During February, the filtration proces incurred the following costs inprocessing 190,000 liters:

Wages of workers operating the filtration equipment - $21,950

Manufacturing overhead allocated to filtration - $25,050

Water-$ 150,000

Cold Spring had no beginning inventory in the filtration department in february.Ã‚

Requirements:

R1) Compute the February Conversion costs in the filtration department.

R2) The filtration department completely processed 190,000 liters in February. What was the filtration cost per liter?

+1

Answers (1)

Know the Answer?

Weston Baxter · Answer 1

R1. $47,000

R2. $1.04 per liter

Explanation:

Given that,

Wages of workers operating the filtration equipment = $21,950

Manufacturing overhead allocated to filtration = $25,050

Water = $ 150,000

R1. February Conversion costs in the filtration department:

= Direct labor costs + Manufacturing overhead

= $21,950 + $25,050

= $47,000

R2. Filtration cost per liter:

= Total cost incurred : Total units processed

= ($21,950 + $25,050 + $ 150,000) : 190,000

= $197,000 : 190,000

= $1.036 or $1.04 per liter