irst-In, First-Out Method; Equivalent Units Aztec Inc. produces soft drinks. Mixing is the first department,...
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irst-In, First-Out Method; Equivalent Units
Aztec Inc. produces soft drinks. Mixing is the first department, and its output is measured in gallons. Aztec uses the FIFO method. All manufacturing costs are added uniformly. For July, the mixing department provided the following information:
Production:
Units in process, July 1, 80% complete
30,000 gallons
Units completed and transferred out
195,000 gallons
Units in process, July 31, 75% complete
12,000 gallons
Costs:
Work in process, July 1
$ 48,000
Costs added during July
390,000
Required:
1. Calculate the equivalent units for July. equivalent units
2. Calculate the unit cost. Round your answer to the nearest cent. $per unit
3. Assign costs to units transferred out and EWIP using the FIFO method. Note: Do not round interim computations.
Cost of units transferred out
$
Ending work in process
$
Answer & Explanation
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