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 materials 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:

January 1 inventory (5,000 gallons, 60% processed) $68,020

Transferred to Bottling Department (60,000 gallons)

January charges:

Direct material (61,000 gallons) 579,500

Direct labor 471,300

Manufacturing overhead 201,900

January 31 inventory ( _______ gallons, 70% processed)

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

Round average cost per equivalent unit to two decimal places, if applicable. Round other answers to the nearest whole number, when appropriate.