$($Appendix $6$A$)$ 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

Units completed and transferred out

Units in process, July $31,75\%$ complete

$120,000$ gallons

$690,000$ gallons

Costs:

Work in process, July $1$

$80,000$ gallons

Costs added during July

$$120,000$

$1,471,500$

Required:

Calculate the equivalent units for July.

$x$ equivalent units

Calculate the unit cost.

$x$ per unit

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

Cost of goods transferred out

Ending work in process