Question:
Bebida Inc. produces soft drinks. Mixing is the first department and its output is measured in gallons. Bebida uses the FIFO method. All manufacturing costs are added uniformly. For August, the mixing department provided the following information:
Production:
Units in process, August 1, 80 percent complete 20,000 gallons
Units completed and transferred out 138,000 gallons
Units in process, August 31, 75 percent complete 16,000 gallons
Costs:
Work in process, August 1 $ 19,200
Costs added during August 180,900
Required:
1. Calculate the equivalent units for August.
2. Calculate the unit cost.
3. Assign costs to units transferred out and EWIP using the FIFO method