Refer to the information for Inca Inc. above.
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:

Required:
1. Calculate the equivalent units for August.
2. Calculate the unit cost. (Note: Round to two decimal places).
3. Assign costs to units transferred out and EWIP using the FIFO method.

Transcribed Image Text:

Production: Units in process, July 1, 80 percent complete Units completed and transferred out Units in process, July 31, 75 percent complete Costs Work in process, July 1 Costs added during July 24,000 gallons 138,000 gallons 16,000 gallons $ 24,000 301,000