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 18,000 gallons Units completed and transferred out 132,000 gallons Units in process, July 31, 65% complete 20,000 gallons

Costs: Work in process, July 1 $36,000 Costs added during July 389,180 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 18,000 Units started 20,000 Total units to account for 38,000 Units to account for: Units started and completed 0 From beginning WIP 18,000 Units in ending WIP 20,000 Total units to account for 38,000 Equivalent units: Units Started and completed 0 To complete beginning WIP 7,200 Units in ending WIP 13,000 Total equivalent units 20,200 Cost Information Costs to account for: Dollars Costs in beginning WIP $ 36,000 Costs added by department 389,180 Total costs to account for $ 425,180 Cost per equivalent unit $ 21.05 Costs accounted for: Total Transferred out: Units started and completed $ Units in beginning work in process: From prior period 36,000 From current period Total cost transferred out $ Goods in ending work in process Total costs accounted for $