Calculate Equivalent Units, Unit Costs, and Transferred CostsFIFO Method Godfrey

Manufacturing, Inc., operates a plant that produces its own regionally marketed Spicy Steak Sauce.

The sauce is produced in two processes, blending and bottling. In the Blending Department, all ma-

terials are added at the start of the process, and labor and overhead are incurred evenly throughout

the process. Godfrey uses the FIFO method. The following data from the Work in ProcessBlending

Department account for January 2016 is missing a few items:

Work in Process Blending Department

January 1 inventory (5,000 gallons, 60% processed) $17,900

Transferred to Bottling Department (60,000 gallons) .................................

January charges:

Direct material (61,000 gallons) ................................................. 152,500

Direct labor................................................................. 73,600

Manufacturing overhead ...................................................... 48,800

January 31 inventory (

gallons, 70% processed) ...........................

Required

Assuming Godfrey uses the FIFO method in process costing, calculate the following amounts for the

Blending Department:

a. Number of units in the January 31 inventory.

b. Equivalent units for materials and conversion costs.

c. January cost per equivalent unit for materials and conversion costs.

d. Cost of the units transferred to the Bottling Department.

e. Cost of the incomplete units in the January 31 inventory