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pochemuha
3 years ago
6

At Spring Fresh, water is added at the beginning of the filtration process. Conversion costs are added evenly throughout the pro

cess. Now assume that in February, 155,000 liters were completed and transferred out of the Filtration Department into the Bottling Department. The 45,000 liters remaining in Filtration’s ending Work-in-Process Inventory were 80% of the way through the filtration process. Recall that Spring Fresh has no beginning inventories. Compute the equivalent units of production for direct materials and conversion costs for the Filtration Department.

Business
1 answer:
ra1l [238]3 years ago
5 0

Answer:

The solution and complete explanation for the above question and mentioned conditions is given below in the attached document.i hope my explanation will help you in understanding this particular question.

Explanation:

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These costs​ called as Transferred costs.

<h3><u>Explanation:</u></h3>

The costs that are accumulated during the time of  upstream production process in a firm refers to Transferred costs. These are associated with the goods that are transferred to the next department of a business from one department. With this product there will be a continuation of the production process.

These are semi finished goods that are transferred for the purpose of continuing the production process. When these units are moved form the  processing  department to the next department, these transferred cost will be transferred from one work in process account to the next account.

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