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
What are the equivalent units of production for the mixing department in July?
a) 426,000 gallons
b) 474,000 gallons
c) 450,000 gallons
d) 414,000 gallons