First-In, First-Out Method; Equivalent Units
Inca Inc. produces soft drinks. Mixing is the first department and its output is measured in gallons. Inca uses the FIFO method. All manufacturing costs are added uniformly. For July, the mixing department provided the following information:
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Production:
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Units in process, July 1, 80% complete
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21,900 gallons
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Units completed and transferred out
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138,000 gallons
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Units in process, July 31, 75% complete
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13,900 gallons
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Costs:
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Work in process, July 1
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$21,900
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Costs added during July
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301,000
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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. If required, round your final answers to the nearest cent.
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Cost of units transferred out
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$
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Ending work in process
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$
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