Arctic Springs produces premium bottled water. Arctic SpringsArctic Springs purchases artesian? water, stores the water in large? tanks, and then runs the water through two? processes: filtration and bottling. At Arctic SpringsArctic Springs?, water is added at the beginning of the filtration process. Conversion costs are added evenly throughout the process. During? February, the filtration process incurred the following costs in processing 220,000 ?litres:

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Wages of workers operating the filtration equipment	$12,500
Wages of workers operating ozonation equipment	16,500
Manufacturing overhead allocated to filtration	24,050
Water	140,000

Arctic Springs
Filtration Department
Flow of Physical Units and Computation of Equivalent Units
	Flow of	Equivalent Units
	Physical	Direct	Conversion
Flow of Production	Units	Materials	Costs
Units to account for:
Beginning work in process, February 1	0
Started in production during February	220,000
Total physical units to account for	220,000
Units accounted for:
Completed and transferred out during February	135,000	135,000	135,000
Ending work in process, February 28	85,000	85,000	68,000
Total physical units accounted for	220,000
Total equivalent units		220,000	203,000

Arctic Springs
Filtration Department
Cost per Equivalent Unit
	Direct	Conversion
Flow of Production	Materials	Costs
Total costs to account for

Cost per equivalent unit