Coca-Cola and PepsiCo are two leading beverage companies known for their iconic soft drink brands. Both companies use process costing to allocate production costs for their flagship products.

Scenario: Coca-Cola produces Coca-Cola Classic, while PepsiCo produces Pepsi-Cola. The production costs for each product include direct materials, direct labor, and manufacturing overhead.

• Coca-Cola Classic Production Costs:
  • Direct Materials Cost per unit: $0.50
  • Direct Labor Cost per unit: $0.20
  • Manufacturing Overhead Cost per unit: $0.30
• Pepsi-Cola Production Costs:
  • Direct Materials Cost per unit: $0.45
  • Direct Labor Cost per unit: $0.25
  • Manufacturing Overhead Cost per unit: $0.35

Requirements:

1. Calculate the total manufacturing cost per unit for Coca-Cola Classic.
2. Determine the total manufacturing cost per unit for Pepsi-Cola.
3. Compare the production costs and pricing strategies of Coca-Cola and PepsiCo.