Question
In: Accounting
First-In, First-Out Method; Equivalent Units Aztec Inc. produces soft drinks. Mixing is the first department, and...
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.
equivalent units
2. Calculate the unit cost. Round your answer
to the nearest cent.
$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 | $ |
| Ending work in process | $ |
Solutions
Expert Solution
Answer :-
1)The equivalent units for July are as follows :-
| Equivalent Units | |||
| Particular | Total Units | % completed this period | Equivalent Units |
|
Units in process, July 1 |
60,000 | 20% | 12,000 |
|
Units started and completed (Units completed and transferred out - Unit in Process,July 1 = 390,000 - 60,000) |
330,000 | 100% | 330,000 |
| Units in process, July 31, 75% complete | 24,000 | 75% | 18,000 |
| Total Equivalents Unit of Production | 414,000 | 360,000 |
Equivalents Unit of Production = 360,000 units
2)Unit cost = Cost added during July / Total Equivalents Unit of Production
Cost added during July = $780,000
Total Equivalents Unit of Production = 360,000 units
Unit Cost = $780,000 / 360,000 units = $2.16666 per unit
Unit Cost = $2.17 per unit (approx.)
3)Costs to units transferred out and EWIP using the FIFO method are as follows :-
Costs to Units Transferred out = Work in Process,July 1 costs + Cost to finish Units in process, July 1+ Cost of units started and completed
Work in Process , July 1 Costs = $96,000
Cost to Finish Unit in Process , July 1 = Equivalents Units in Process,July 1 × Unit cost per unit
Cost to Finish Unit in Process, July 1 = 12,000 units × $2.16666 = $26,000
Cost of Units Started and Completed = Equivalents Unit started and completed × Unit Cost
Cost of Units Started and Completed = 330,000 units × $2.16666 = $715,000
Cost of Units Transferred out = $96,000 +$26,000 + $715,000
Cost of Units Transferred out = $837,000
Ending Work in Process = Equivalents Units in Process , July 31 × Unit Cost
Ending Work in Process = 18,000 × $2.16666
Ending Work in Process = $39,000
ekkarill92 answered 1 year agoRelated Solutions
First-In, First-Out Method; Equivalent Units Aztec Inc. produces soft drinks. Mixing is the first department, and...
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
30,000 gallons
Units completed and transferred out
195,000 gallons
Units in process, July 31, 75% complete
12,000 gallons
Costs:
Work in process, July 1
$ 48,000
Costs added during July...
First-In, First-Out Method; Equivalent Units Aztec Inc. produces soft drinks. Mixing is the first department, and...
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
30,000 gallons
Units completed and transferred out
195,000 gallons
Units in process, July 31, 75% complete
12,000 gallons
Costs:
Work in process, July 1
$ 48,000
Costs added during July...
Aztec Inc. produces soft drinks. Mixing is the first department, and its output is measured in...
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, 60% complete 18,000 gallons
Units completed and transferred out 132,000 gallons
Units in process, July 31, 65% complete 20,000 gallons
Costs:
Work in process, July 1 $36,000
Costs added during July 389,180
Required: Prepare a production report....
(Appendix 6A) FIFO; Production Report Aztec Inc. produces soft drinks. Mixing is the first department, and...
(Appendix 6A) FIFO; Production Report
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, 40% complete
20,000 gallons
Units completed and transferred out
137,000 gallons
Units in process, July 31, 55% complete
16,000 gallons
Costs:
Work in process, July 1
$40,000
Costs added during July
399,620...
(Appendix 6A) FIFO; Production Report Aztec Inc. produces soft drinks. Mixing is the first department, and...
(Appendix 6A) FIFO; Production Report
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, 40% complete
20,000 gallons
Units completed and transferred out
142,000 gallons
Units in process, July 31, 55% complete
24,000 gallons
Costs:
Work in process, July 1
$40,000
Costs added during July
397,440...
(Appendix 6A) FIFO; Production Report Aztec Inc. produces soft drinks. Mixing is the first department, and...
(Appendix 6A) FIFO;
Production Report
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...
(Appendix 6A) FIFO; Production Report Aztec Inc. produces soft drinks. Mixing is the first department, and...
(Appendix 6A) FIFO; Production Report
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, 60% complete
18,000 gallons
Units completed and transferred out
139,000 gallons
Units in process, July 31, 55% complete
24,000 gallons
Costs:
Work in process, July 1
$36,000
Costs added during July
353,500...
(Appendix 6A) FIFO; Production Report Aztec Inc. produces soft drinks. Mixing is the first department, and...
(Appendix 6A) FIFO; Production Report
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, 60% complete
22,000 gallons
Units completed and transferred out
138,000 gallons
Units in process, July 31, 55% complete
16,000 gallons
Costs:
Work in process, July 1
$44,000
Costs added during July
307,280...
(Appendix 6A) FIFO; Production Report Aztec Inc. produces soft drinks. Mixing is the first department, and...
(Appendix 6A) FIFO; Production Report
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, 60% complete
18,000 gallons
Units completed and transferred out
141,000 gallons
Units in process, July 31, 45% complete
16,000 gallons
Costs:
Work in process, July 1
$36,000
Costs added during July
398,460...
Production Report Tomar Company produces vitamin energy drinks. The Mixing Department, the first process department, mixes...
Production Report
Tomar Company produces vitamin energy drinks. The Mixing
Department, the first process department, mixes the ingredients
required for the drinks. The following data are for April:
Work in process, April 1
—
Quarts started
90,000
Quarts transferred out
75,000
Quarts in EWIP
15,000
Direct materials cost
$84,000
Direct labor cost
$168,000
Overhead applied
$336,000
Direct materials are added throughout the process. Ending
inventory is 60 percent complete with respect to direct labor and
overhead.
Required:
Prepare a production...
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