Energetics Inc. produces an energy drink. The product is sold by the gallon. The company has two departments: Mixing and Bottling. For July, the bottling department had 40,000 gallons in beginning inventory (with transferred-in costs of $142,000) and completed 175,000 gallons during the month. Further, the mixing department completed and transferred out 160,000 units at a cost of $458,000 in July.

Required:

1. Prepare a physical flow schedule for the bottling department.

2. Calculate equivalent units for the transferred-in category.

3. Calculate the unit cost for the transferred-in category.