Reference no: EM132507351

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                       120,000 gallons
Units completed and transferred out                          690,000 gallons
Units in process, July 31, 75% complete                       80,000 gallons

Costs:

Work in process, July 1                                                $ 120,000
Costs added during July                                               1,471,500

Required:

Question 1. Calculate the equivalent units for July.

Question 2. Calculate the unit cost. (Note: Round to two decimal places.)

Question 3. Assign costs to units transferred out and EWIP using the FIFO method.