Calculate Equivalent Units, Unit Costs, and Transferred CostsFIFO Method Kipling Manufacturing, Inc., operates a plant that produces its own regionally-marketed Super Salad Dressing. The dressing is produced in two processes, blending and bottling. In the Blending Department, all materials are added at the beginning of the process, and labor and overhead are incurred evenly throughout the process. Kipling uses the FIFO method. The Work in Process- Blending Department account for January 2016 follows: Work in Process - Blending Department January 1 inventory (4,000 gallons, 75% processed) $80,000 Transferred to Bottling Department (70,000 gallons) January charges: Direct material (71,000 gallons) 1,136,000 409,500 Manufacturing overhead 500,500 January 31 inventory ( gallons, 60% processed) Direct labor 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. Kipling Manufacturing, Inc. Blending Department Flow of Units and Equivalent Units Calculation, January 2016 Equivalent Units % in Direct % in Conversion January Materials January Costs Complete/Transferred Beginning Inventory % Started and completed % 96 Ending inventory a. 96 9% Total b. 90 b. Product Cost Report Direct Materials Conversion Costs $ $ $ $ C. $ $ Beginning Inventory $ Current Total Costs to Account For $ $ - Total Equivalent Units Average cost / Equivalent unit (round two decimal places) Beginning inventory Costs incurred in Dec. $ Costs incurred in Jan. Started and finished Cost of goods manufactured $ $ Ending inventory Direct Materials $ Conversion costs Cost of Ending Inventory $ $ Total Costs Allocated $ d. e