1. (Appendix 6A) FIFO; Production Report

   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, 60% complete		22,000 gallons
   Units completed and transferred out		134,000 gallons
   Units in process, July 31, 55% complete		20,000 gallons
   Costs:
   Work in process, July 1		$44,000
   Costs added during July		355,860

   Required:

   Prepare a production report.

   Aztec Inc. Mixing Department
   Production Report
   For the Month of July (FIFO Method)
   Unit Information
   Physical flow:
   Units to account for:	Units
   Units in beginning WIP	22,000
   Units started	132,000
   Total units to account for	154,000
   Units to account for:
   	Units
   Units started and completed	112,000
   From beginning WIP	22,000
   Units in ending WIP	20,000
   Total units to account for	154,000
   Equivalent units:	Units
   Started and completed	112,000
   To complete beginning WIP	8,800
   Units in ending WIP	11,000
   Total equivalent units	131,800
   Cost Information
   Costs to account for:
   	Dollars
   Costs in beginning WIP	$0????
   Costs added by department	355,860 correct
   Total costs to account for	$131800????????????
   Cost per equivalent unit	$ 2.70 correct
   Costs accounted for:
   	Total
   Transferred out:
   Units started and completed	$ 302,400
   Units in beginning work in process:
   From prior period	44,000
   From current period	23,760
   Total cost transferred out	$ 370,160
   Goods in ending work in process	29,700
   Total costs accounted for	$ 399,860