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?
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