First In, First-Out Method; Equivalent Units

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, 80% Complete 100,000 gallons Units completed and transferred out 690,000 gallons Units in process, July 21, 75% complete 80,000 gallons Costs Work in process, July 1 $120,000 Costs added during July 1,471,500

This information has been collected in the Microsoft Excel online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.

Required:

1. Calculate the equivalent units for July

_______________ equivalents units

2. Calculate the unit cost. Round your answer to the nearest cent.

________________ per unit

3. Assign costs to units transferred out and EWIP using the FIFO method. Do not round intermediate calculations. Round your answers to the nearest dollar.

Cost of units transferred out: $_____________

Ending Work in process $____________