Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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
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 | 60,000 gallons | |
Units completed and transferred out | 390,000 gallons | |
Units in process, July 31, 75% complete | 24,000 gallons | |
Costs: | ||
Work in process, July 1 | $ 96,000 | |
Costs added during July | 780,000 |
Required:
1. Calculate the equivalent units for July. 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 | $ |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started