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Question - First-In, First-Out Method; Equivalent Units
Inca Inc. produces soft drinks. Mixing is the first department and its output is measured in gallons. Inca 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
24,500 gallons
Units completed and transferred out
138,000 gallons
Units in process, July 31, 75% complete
16,500 gallons
Costs:
Work in process, July 1
$24,500
Costs added during July
301,000
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. If required, round your final answers to the nearest cent.
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