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% complete110,000 gallons

Units completed and transferred out759,000 gallons

Units in process, July 31, 75% complete88,000 gallons

Costs:

Work in process, July 1$132,000

Costs added during July1,618,650

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.

Open spreadsheet

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$