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:

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1.	Calculate the equivalent units for July.
	fill in the blank 2 equivalents units
2.	Calculate the unit cost. Round your answer to the nearest cent.
	$fill in the blank 3 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	$fill in the blank 4
	Ending work in process	$fill in the blank 5

DATA

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Production:

Units in process, July 1,

80%

complete

60,000

gallons

Units completed and transferred out

414,000

gallons

Units in process, July 31,

75%

complete

48,000

gallons

Costs:

Work in process, July 1

$72,000

Costs added during July

882,900

Using formulas and cell references, perform the required analysis, and input your answers into the green cells in the Amount column. Use the blue cells (C18:C20, C26:C28) for intermediate calculations. Transfer the numeric results for the green entry cells (C21, C23, C29, C31) into the appropriate fields in CNOWv2 for grading.

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Required:

1.

Amount

Formulas

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Units in BWIP

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Units started and completed

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Units in EWIP

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Total equivalent units for July

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2. Unit cost

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3. Cost of units transferred out:

BWIP Cost

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Units in BWIP

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Units started and completed

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Total cost of units transferred out

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Cost of units in EWIP

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