Bebida Inc. produces soft drinks. Mixing is the first department and its output is measured in gallons. Bebida uses the FIFO method. All manufacturing costs are added uniformly. For August, the mixing department provided the following information:

Production:

Units in process, August 1, 80 percent complete 20,000 gallons

Units completed and transferred out 138,000 gallons

Units in process, August 31, 75 percent complete 16,000 gallons

Costs:

Work in process, August 1 $ 19,200

Costs added during August 180,900

Required:

1. Calculate the equivalent units for August.

2. Calculate the unit cost.

3. Assign costs to units transferred out and EWIP using the FIFO method.