Exxon Mobil Corporation refines crude oil into various petroleum products. During June 2024, the refining process incurs costs of 50 million and produces 1 million gallons of gasoline. Due to evaporation and spillage, 100,000 gallons were lost during production.

Required:

• Calculate the cost per gallon of gasoline produced.
• Determine the equivalent units of production considering normal and abnormal losses.
• Allocate costs to the units completed and units lost using the average cost method.
• Analyze the impact of losses on unit costs and profitability.
• Discuss strategies to minimize losses in a process costing environment.