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Use the following information for Brief Exercises 6-29 and 6-30: 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: 6-29 (Appendix 6A) First-In, First-Out Method; Equivalent Units Refer to the information for Aztec Inc. on the previous page. Required: 1. Calculate the equivalent units for July. 2. Calculate the unit cost. ( Note: Round to two decimal places.) 3. Assign costs to units transferred out and EWIP using the FIFO method.

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Managerial Accounting: The Corners...

7th Edition
Maryanne M. Mowen + 2 others
Publisher: Cengage Learning
ISBN: 9781337115773
BuyFind

Managerial Accounting: The Corners...

7th Edition
Maryanne M. Mowen + 2 others
Publisher: Cengage Learning
ISBN: 9781337115773

Solutions

Chapter
Section
Chapter 6, Problem 29BEA
Textbook Problem
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Use the following information for Brief Exercises 6-29 and 6-30:

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:

Chapter 6, Problem 29BEA, Use the following information for Brief Exercises 6-29 and 6-30: Aztec Inc. produces soft drinks.

6-29 (Appendix 6A) First-In, First-Out Method; Equivalent Units

Refer to the information for Aztec Inc. on the previous page.

Required:

  1. 1. Calculate the equivalent units for July.
  2. 2. Calculate the unit cost. (Note: Round to two decimal places.)
  3. 3. Assign costs to units transferred out and EWIP using the FIFO method.

Expert Solution

1.

To determine

Compute equivalent units for July.

Explanation of Solution

Equivalent Units of Production:

The total units of finished goods along with those goods that are not fully complete are known as equivalent units of production. In other words, equivalent units of production measures both completed and nearly completed units.

Use the following formula to calculate the equivalent units:

Equivalent units=(Units started and completed+Units in BWIP+Units in EWIP

Expert Solution

2.

To determine

Compute the unit cost of Company SI.

Expert Solution

3.

To determine

Calculate cost of units transferred-out and cost of EWIP by using FIFO method.

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Chapter 6 Solutions

Managerial Accounting: The Cornerstone of Business Decision-Making
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