Solved by verified expert :Spring Fresh produces
premium bottled water. Spring Fresh 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 the filtration equipment . . . . . . $ 25,950
Manufacturing
overhead allocated to filtration . . . . . . . . . . 20,050
Water . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80,000
Spring Fresh 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?
