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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) 8,000 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 Costs added during December

Transferred in $1,760 Transferred in $136,000

Direct materials $0 Direct materials $30,800

Direct labor $600 Direct labor $33, 726

Mfg overhead $520 Mfg overhead $25,742

Total beginning WIP on Dec 1 $2880 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?

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8. The completion of the first two steps of the process costing procedure for the Bottling Department of Helsinki is as follows:

a) Summary of the physical flow of units:

Beginning work in process =                8,000 liters

Transferred in from Filtration =         160,000 liters

Added in liters                                       8,000 liters (22,000 + 154,000 - 160,000 - 8,000)

Total liters available                          176,000 liters

Completed and transferred out =    154,000 liters

Ending work in process inventory = 22,000 liters

b) The computation of the equivalent units of direct materials and conversion costs of Helsinki is as follows:

                                                       Direct Materials          Conversion Costs

Completed and transferred out =    154,000 liters             154,000 liters

Ending work in process inventory =            0 liters               14,300 liters (65%)

Total equivalent units                     154,000 liters           168,300 liters

9. The completion of  Steps 3 and 4 of the process costing procedure is as follows:

a) Summary of the total costs to account for:

                                      Direct Materials    Conversion Costs    Total Costs

Beginning inventory:                 $1,760              $1,120                     $2,880

Transferred in                       $136,000                                          $136,000

Added in during Dec.            $30,800          $59,468                   $90,268

Total costs of production  $168,560          $60,588                 $229,148

b) The computation of the cost per equivalent unit for both direct materials and conversion costs:

                                                       Direct Materials          Conversion Costs

Total costs of production                     $168,560                      $60,588

Total equivalent units                       154,000 liters             168,300 liters

Cost per equivalent units                  $1.0945                       $0.36 ($60,588/168,300)

10. The completion of Step 5 of the process costing procedure is as follows:

Assigning costs to units completed and to units in ending inventory:

                                 Direct Materials      Conversion Costs    Total Costs

Cost of finished units         $168,553                $55,440           $223,993

                     ($1.0945 x 154,000)         ($0.36 x 154,000)

Ending inventory              $0                                $5,148                $5,148

Total costs accounted for $168,553               $60,588            $229,141

11. The ending WIP balance on December 31 is $5,148.

What are equivalent units of production?

The equivalent units of production express the amount of work done by Helsinki's Bottling Department on units of output that are partially completed at the end of December.

Two methods are commonly in use:

  • Weighted-average
  • FIFO method.

We have used the weighted-average method in this task, which weighs the units completed during the accounting period based on the degree of completion without taking into account the units of the beginning Work in Process.

Data and Calculations:

Beginning work in process = 8,000 liters (40% complete)

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

Costs in beginning work in       Costs added during December

process inventory

Transferred in      $1,760           Transferred in   $136,000

Direct materials         $0            Direct materials $30,800

Direct labor           $600            Direct labor       $33, 726

Mfg overhead       $520            Mfg overhead    $25,742

Total beginning WIP                  Total costs added

on Dec 1           $2,880             in Dec             $226,268

Learn more about computing the equivalent units of production at https://brainly.com/question/16259709

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