Process Excellence (PE), Inc. has two production departments: Mixing and Packaging. The information that pertains to the Mixing Department for the month of July is reproduced here. All materials are added at the beginning of the process. Labor and overhead (conversion resources) are added evenly throughout the process. % complete with respect to conversion.

Physical Units Materials Conversion

Beginning work-in-process inventory 1,000 units (40% complete) $8,500 $7,552

Units started in July 5,000 units

Ending work-in-process inventory 400 units (30% complete)

Costs added in July 60,500 130,872

Required:

1.Determine the number of units completed and transferred to the Packaging Department in July.

2.Compute the equivalent units using the FIFO method.

3.Compute the cost per equivalent unit using the FIFO method.

4.Compute the costs of goods transferred out and the ending work-in-process inventory using the FIFO method.