(Appendix 6A) First-In, First-Out Method; Equivalent Units

Saludable Inc. produces a freeze-dried kale powder. Drying is the first department, and its output is measured in pounds. Saludable uses the FIFO method. All manufacturing costs are added uniformly. For November, the drying department provided the following information:

Production:

Units in process, November 1, 70% complete6,000 pounds

Units completed and transferred out34,500 pounds

Units in process, November 30, 60% complete4,000 pounds

Costs:

Work in process, November 1$16,380

Costs added during November$130,800

Required:

1.Calculate the equivalent units for November.

______equivalent units

2.Calculate the unit cost.

________per unit

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

Cost of goods transferred out$________

Cost of ending work in process$_________