ABC Company manufactures a single product, which goes through three production processes: Mixing, Shaping, and Finishing. The following information pertains to the production of 10,000 units during the month of May:

1. Mixing Process:
   • Direct materials cost: $20,000
   • Direct labor cost: $15,000
   • Overhead costs: $10,000
   • Output: 12,000 units
2. Shaping Process:
   • Direct materials cost: $15,000
   • Direct labor cost: $12,000
   • Overhead costs: $8,000
   • Output: 11,000 units
3. Finishing Process:
   • Direct materials cost: $12,000
   • Direct labor cost: $10,000
   • Overhead costs: $6,000
   • Output: 10,000 units

Additional Information:

• The company uses the weighted average method for its process costing system.
• Ending work in process inventories for each process are as follows:
  • Mixing Process: 2,000 units, 60% complete with respect to materials and 40% complete with respect to conversion costs.
  • Shaping Process: 1,500 units, 70% complete with respect to materials and 50% complete with respect to conversion costs.
  • Finishing Process: 1,000 units, 80% complete with respect to materials and 60% complete with respect to conversion costs.
• Selling and administrative expenses for the month totaled $25,000.
• The company uses a markup of 25% on total cost to determine the selling price.

Requirements:

1. Calculate the equivalent units of production for each process.
2. Compute the total cost per equivalent unit for each process.
3. Determine the cost of goods completed and transferred out of each process.
4. Calculate the cost of ending work in process inventory for each process.
5. Prepare a cost of goods manufactured schedule for the month.
6. Calculate the cost of goods sold for the month.
7. Determine the gross profit for the month.
8. Prepare an income statement for the month, including selling and administrative expenses.