1. Coca-Cola Company uses process costing for bottling operations. In July 2032, the bottling department incurs costs of $500,000 and processes 100,000 units. The department started the month with 10,000 units in process that were 60% complete. During the month, 90,000 units were completed and transferred out. Ending work in process was 20,000 units, 40% complete.

Required:

• Calculate the equivalent units of production for direct materials and conversion costs.
• Determine the cost per equivalent unit for direct materials and conversion costs using the weighted average method.
• Allocate costs to completed units and units in ending work in process.
• Prepare a process costing statement for Coca-Cola Company.
• Discuss the advantages and limitations of the weighted average method in process costing.