3M Company produces adhesive tapes using process costing in two departments: Mixing and Packaging. In January 2038, the company incurs the following costs:

• Mixing Department: $1,200,000
• Packaging Department: $800,000
• Units transferred from Mixing to Packaging: 50,000 units
• Units completed in Packaging: 48,000 units

Requirements:

• Calculate the cost per equivalent unit for each department.
• Allocate costs to completed and transferred units.
• Prepare departmental cost reconciliation statements.
• Analyze the impact of inter-departmental cost allocations on profitability.
• Recommend process improvements for cost efficiency.