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Transferred-In Cost Powers Inc. produces a protein drink. The product is sold by the gallon. The company has two departments: mixing and bottling. For August, the bottling department had 70,000 gallons in beginning inventory (with transferred-in costs of $283,000) and completed 262,500 gallons during the month. Further, the mixing department completed and transferred out 240,000 gallons at a cost of $957,000 in August.
Required:
Question 1. Prepare a physical flow schedule for the bottling department.
Question 2. Calculate equivalent units for the transferred-in category.
Question 3. Calculate the unit cost for the transferred-in category.
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