Question
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
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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.
2. Calculate the unit cost. Round your answer to the nearest cent.
3. Assign costs to units transferred out and EWIP using the FIFO method. Note: Do not round interim computations.
Cost of units transferred out $fill in the blank Ending work in process $fill in the blank
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.
2. Calculate the unit cost. Round your answer to the nearest cent.
3. Assign costs to units transferred out and EWIP using the FIFO method. Note: Do not round interim computations.
| Cost of units transferred out | $fill in the blank |
| Ending work in process | $fill in the blank |
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Fundamental financial accounting concepts
Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward
8th edition
978-0078025365
