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. 360,000 V equivalent units I 2. Calculate the unit cost. Round your answer to the nearest cent. $4 2.17 V 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 %$4 903,240 X Ending work in process 117,180 X %24
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. 360,000 V equivalent units I 2. Calculate the unit cost. Round your answer to the nearest cent. $4 2.17 V 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 %$4 903,240 X Ending work in process 117,180 X %24
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter6: Process Costing
Section: Chapter Questions
Problem 29BEA: Use the following information for Brief Exercises 6-29 and 6-30: Aztec Inc. produces soft drinks....
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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.
360,000 V equivalent units
I
2. Calculate the unit cost. Round your answer to the nearest cent.
$4
2.17
V 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
%$4
903,240 X
Ending work in process
117,180 X
%24](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcc5d2a05-6670-4fd5-be3a-92d6b47f8483%2F2b41aa19-855f-49d6-9210-776e14cda3f2%2Fnfhvkk.png&w=3840&q=75)
Transcribed Image Text: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.
360,000 V equivalent units
I
2. Calculate the unit cost. Round your answer to the nearest cent.
$4
2.17
V 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
%$4
903,240 X
Ending work in process
117,180 X
%24
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