9) Clear Water Company produces premuim bottled water. In the second departmen

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    9) Clear Water Company produces premuim bottled water. In the second department the bottling department conversion costs are incurred evenly throughout the
    bottling process but packaging materials are not added until the end of the process. Costs in beginning work process inventory include transferred in costs of
    $1400 direct labor of $500 and manufacturing overhead of $430. February data for the bottling department follow:

    Beginning inventory Jan. 31 (40% complete- 8000 (physical units) dollars 2300 transferredout physical units150000.

    Production started:

    Transferred in- 162000 (physical units)dollars 132900

    Direct materials dollars 33000

    Conversion Costs:

    direct labor- dollars 33500

    manfacturing overhead- dollars

    Total to account for- 170000 (physical units) 224700 (dollars)

    Ending inventory February 28 (70% complete)- 20000 (physical units)

    Requirements:

    R1-draw a time line

    R2- compute the bottling department equivalent units for the month of February. use the weighted average method.

    R3-Compute the cost per equivalent unit for February

    R4- Assign the costs to units completed and transferred out and to ending inventory

    R5- Prepare the journal entry to record the cost of units completed and transferred out

    R6- post all transactions to the work in process inventory bottling department T-account. What is the ending balance?

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