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

40,000 gallons

Units completed and transferred out

260,000 gallons

Units in process, July 31, 75% complete

16,000 gallons

Costs:

Work in process, July 1

$ 64,000

Costs added during July

520,000

Required:

1.Calculate the equivalent units for July.

equivalent 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.Note: Do not round interim computations.

Cost of units transferred out

$

Ending work in process

$