Chapter 6, Problem 38BEB

Transferred-In Cost

Vigor Inc. produces an energy drink. The product is sold by the quart. The company has two departments: mixing and bottling. For May, the bottling department had 30,000 quarts in beginning inventory (with transferred-in costs of $63,000) and completed 140,000 quarts during the month. Further, the mixing department completed and transferred out 120,000 gallons at a cost of $237,000 in May.

Required:

1. 1. Prepare a physical flow schedule for the bottling department.
2. 2. Calculate equivalent units for the transferred-in category.
3. 3. Calculate the unit cost for the transferred-in category.