SUBSEQUENT DEPARTMENTS ADDING MORE UNITS The Gulpy Beverage Corp. produces a cola beverage. Three liquid raw materials (syrup. water, and phosphoric acid) are used in production. Syrup enters production at the begin- ing of Department 1. In Department 2, water is added (at no cost) at the beginning of the process and phosphoric acid is added at the end of the process. For every gallon (unit) of syrup that is transferred into Department 2, two gallons of water and one gallon of phosphoric acid are required to produce the finished beverage. No gallons are lost through evaporation. During May, 100,000 gallons were transferred into Department 2 at a cost of $.45 per gallon. Finished goods inventory was debited for $240,000 during May. Of units trans- ferred in during the period, 75% were completed. Required: How many gallons of water and phosphoric acid were added to production? b Calculate the revised unit cost for units transferred in to Department 2 during May. e Calculate the units of equivalent production for direct materials if Department 2's ending work-in-process inventory was 45% complete as to conversion costs