Question -
Spring Water 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 160,000 liters:
Wages of workers operating the filtration equipment - $25,950
Manufacturing overhead allocated to filtration - 24,050
Water - 150,000
Spring Water had no beginning Work-in-Process Inventory in the Filtration Department in February.
Requirements -
1. Compute the February conversion costs in the Filtration Department. What is the formula to do so?
2. The Filtration Department completely processed 160,000 liters in February. What was the filtration cost per liter?