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 ProcessBlending Department account for January 2019 follows:

Work in Process - Blending Department
January 1 inventory (4,000 gallons, 75% processed)	$40,000
Transferred to Bottling Department (70,000 gallons)
January charges:
Direct material (71,000 gallons)	568,000
Direct labor	164,000
Manufacturing overhead	186,000
January 31 inventory ( _______ gallons, 60% processed)

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 2019
		Equivalent Units
		% in	Direct	% in	Conversion
		January	Materials	January	Costs
Complete/Transferred
Beginning Inventory
Started and completed
Ending inventory
Total				b.		b.

Product Cost Report
			Direct		Conversion
			Materials		Costs
Beginning Inventory
Current
Total Costs to Account For
Total Equivalent Units				c.		c.
Average cost / Equivalent unit (round 2 decimal places)
Beginning inventory
Costs incurred in Dec.
Costs incurred in Jan.
Started and finished
Cost of goods manufactured		d.
Ending inventory:
Direct Materials
Conversion costs
Cost of Ending Inventory		e.
Total Costs Allocated