Aztec Inc. produces soft drinks. Mixing is the first department, and its output is measured in gallons. Aztec uses the FIF0 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. equivalent 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 %24

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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.
equivalent 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
Transcribed Image Text: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. equivalent 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
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