Problem no. 1 SPRING Company bottles mineral water. The water is filtered in Department 1 and then flows through to Department 2 where it is bottled. The company's only direct materials costs occurs in the bottling stage. The quantity schedules of Spring Company are as follows: Department 1 Units started in process 110,000 1 Units transferred to Department 80,000 Units in process, 2 end Department 2 30,000 Units received from Department 80,000 Units transferred to finished goods 61,400 Units in process, inventory end 18,600 Ending units in process in both departments are 72% complete as to conversion costs. Questions: 1. Direct materials equivalent units of production for Department 1 are? 2. Department 2 would have how many equivalent units of production, on the basis of a conversion cost computation?

Problem no. 1 SPRING Company bottles mineral water. The water is filtered in Department 1 and then flows through to Department 2 where it is bottled. The company's only direct materials costs occurs in the bottling stage. The quantity schedules of Spring Company are as follows: Department 1 Units started in process 110,000 1 Units transferred to Department 80,000 Units in process, 2 end Department 2 30,000 Units received from Department 80,000 Units transferred to finished goods 61,400 Units in process, inventory end 18,600 Ending units in process in both departments are 72% complete as to conversion costs. Questions: 1. Direct materials equivalent units of production for Department 1 are? 2. Department 2 would have how many equivalent units of production, on the basis of a conversion cost computation?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter6: Process Costing

Section: Chapter Questions

Problem 30E: Proteger Company manufactures insect repellant lotion. The Mixing Department, the first process...

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