Helsinki Inc. produces premium bottled water. Helsinki purchases artesian water, stores the water in large tanks, and then runs the water through two processes: Filtration, where workers microfilter and ozonate the water Bottling, where workers bottle and package the filtered water During December, the filtration process incurs the following costs in processing 200,000 liters: Wages of workers operating the filtration equipment $11,100 Wages of workers operating ozonation equipment $12,850 Manufacturing overhead allocated to filtration $24,050 Water $120,000 We now consider Helsinki's second process-Bottling. 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. December data from the Bottling Department is given below: Beginning work in process inventory (40% of the way through the process) 9,000 liters Transferred in from Filtration 160,000 liters Completed and transfer red out to Finished Goods Inventory in December 154,000 liters Ending work in process inventory (65% of the way through the bottling process) 22,000 liters The Filtration Department completed and transferred out 160,000 liters at a total cost of $136,000. Costs in beginning work in process inventory Transferred in $1,760 Direct materials $0 Direct labor $600 Mfg overhead $520 Total beginning WIP on Dec 1 $2880 Costs added during December Transferred in $136,000 Direct materials $30,800 Direct labor $33, 726 Mfg overhead $25,742 Total costs added in Dec $226,268. 8.Complete the first two steps of the process costing procedure for the Bottling Department: summarize the physical flow of units and then compute the equivalent units of direct materials and conversion costs. 9.Complete Steps 3 and 4 of the process costing procedure: Summarize total costs to account for and then compute the cost per equivalent unit for both direct materials and conversion costs. 10.Complete Step 5 of the process costing procedure: Assign costs to units completed and to units in ending inventory. 11.What is the ending WIP balance on December 31?

Helsinki Inc. produces premium bottled water. Helsinki purchases artesian water, stores the water in large tanks, and then runs the water through two processes: Filtration, where workers microfilter and ozonate the water Bottling, where workers bottle and package the filtered water During December, the filtration process incurs the following costs in processing 200,000 liters: Wages of workers operating the filtration equipment $11,100 Wages of workers operating ozonation equipment $12,850 Manufacturing overhead allocated to filtration $24,050 Water $120,000 We now consider Helsinki's second process-Bottling. 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. December data from the Bottling Department is given below: Beginning work in process inventory (40% of the way through the process) 9,000 liters Transferred in from Filtration 160,000 liters Completed and transfer red out to Finished Goods Inventory in December 154,000 liters Ending work in process inventory (65% of the way through the bottling process) 22,000 liters The Filtration Department completed and transferred out 160,000 liters at a total cost of $136,000. Costs in beginning work in process inventory Transferred in $1,760 Direct materials $0 Direct labor $600 Mfg overhead $520 Total beginning WIP on Dec 1 $2880 Costs added during December Transferred in $136,000 Direct materials $30,800 Direct labor $33, 726 Mfg overhead $25,742 Total costs added in Dec $226,268. 8.Complete the first two steps of the process costing procedure for the Bottling Department: summarize the physical flow of units and then compute the equivalent units of direct materials and conversion costs. 9.Complete Steps 3 and 4 of the process costing procedure: Summarize total costs to account for and then compute the cost per equivalent unit for both direct materials and conversion costs. 10.Complete Step 5 of the process costing procedure: Assign costs to units completed and to units in ending inventory. 11.What is the ending WIP balance on December 31?

Financial & Managerial Accounting

14th Edition

ISBN:9781337119207

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter15: Introduction To Managerial Accounting

Section: Chapter Questions

Problem 15.9EX: Classifying costs The following is a manufacturing cost report of Marching Ants Inc. Evaluate and...

See similar textbooks

Related questions

Question

I only need answers for 8,9,10 and 11. I have attached what I have answered until step 6. You may use it for reference to complete the questions.

Helsinki Inc. produces premium bottled water. Helsinki purchases artesian water, stores the water in large tanks, and then runs the water through two processes:

Filtration, where workers microfilter and ozonate the water
Bottling, where workers bottle and package the filtered water

During December, the filtration process incurs the following costs in processing 200,000 liters:

Wages of workers operating the filtration equipment $11,100
Wages of workers operating ozonation equipment $12,850
Manufacturing overhead allocated to filtration $24,050
Water $120,000

We now consider Helsinki's second process-Bottling. 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.

December data from the Bottling Department is given below:

Beginning work in process inventory (40% of the way through the process) 9,000 liters
Transferred in from Filtration 160,000 liters
Completed and transfer red out to Finished Goods Inventory in December 154,000 liters
Ending work in process inventory (65% of the way through the bottling process) 22,000 liters

The Filtration Department completed and transferred out 160,000 liters at a total cost of $136,000.

Costs in beginning work in process inventory

Transferred in $1,760
Direct materials $0
Direct labor $600
Mfg overhead $520
Total beginning WIP on Dec 1 $2880

Costs added during December

Transferred in $136,000
Direct materials $30,800
Direct labor $33, 726
Mfg overhead $25,742
Total costs added in Dec $226,268.

8.Complete the first two steps of the process costing procedure for the Bottling Department: summarize the physical flow of units and then compute the equivalent units of direct materials and conversion costs.

9.Complete Steps 3 and 4 of the process costing procedure: Summarize total costs to account for and then compute the cost per equivalent unit for both direct materials and conversion costs.

10.Complete Step 5 of the process costing procedure: Assign costs to units completed and to units in ending inventory.

11.What is the ending WIP balance on December 31?

Step 1
Step 5
Conversion Costs=
Total cost and cost per Equivalent units:
Wages of Workers Filtration+Manufacturing Overhead Allocated to Filtration=$11,100+$24,050=$3
Description
Direct Material
Conversion Cost
5,150
Current Period Costs
48,000
120,000
200,000
Total Equivalent Units
192,000
Step 2
Cost per Equivalent Units
(Cost per Equivalent Units = Current Period Cost / Total Equivalent units)
0.60
0.25
Average Filtration Cost Per Liter=Cost of Water+Wages of Workers (Filtration)+Manufacturing Overhead
Allocated to Filtration
Step 6
Average Filtration Cost Per Liter=Cost of Water+Wages of Workers (Filtration)+Manufacturing Overhead
Cost of Completed Units:
Allocated to FiltrationLiters of Water Processed=$120,000+$11,100+$24,050200,000
Liters=$155,150200,000 Liters=$0.77575 Per Liter
Description
Material
Conversion Cost
Total
Cost per Equivalent
0.60
$
0.25
step 3
Units
Total Units Completed
160,000
160,000
Average cost alludes to the per-unit creation cost of the product conveyed in the association during the
period. It is the assessed complete expense, including allotted upward, to deliver a group of products
$ 96,000.00
Total Costs of
$
40,000.00
$ 136,000.00
completed units
partitioned by the allotted number of units created. The marginal expense of creation is the adjustment
of the complete creation cost that comes from making or delivering one extra unit. Therefore, the cost
per completely filtered and ozonated liter is higher than that computed in question 2.
Average Filtration and Ozonated Cost Per Liter=Cost of Water+Wages of Workers (Filtration)+Wages of
Workers (Ozonated)+Manufacturing Overhead Allocated to FiltrationLiters of Water
Processed=$120,000+$11,100+$12,850+$24,050/(160,000 Liters)+40,000 (Liters50%)
=$168,000 /180,000 Liters
=$0.93 Per Liter
Step 4
Calculation of equivalent units
Direct Material Units
Conversion cost units
Unita completed and
160,000
160,000
transferred out
Percentage of completion
Equivalent units
Ending work in progress
Percentage of Completion
100%
100%
160,000
160,000
40,000
40.000
100%
80%
Equivalent units
40,000
32,000
Total Equivalent units
200,000
192,000

Expert Solution

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Decision to Sell before or after additional processing

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Recommended textbooks for you

Financial & Managerial Accounting

Accounting

ISBN:

9781337119207

Author:

Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:

Cengage Learning