Ford Motor Company manufactures vehicles using process costing. In July 2027, the company incurs costs of $200 million and produces 100,000 vehicles. Due to a factory fire, 5,000 vehicles were damaged beyond repair.

Required:

• Calculate the cost per vehicle produced by Ford Motor Company.
• Determine the equivalent units of production considering normal and abnormal losses.
• Allocate costs to completed units and units lost using the weighted average method.
• Analyze the impact of abnormal losses on unit costs and profitability.
• Discuss strategies to prevent and mitigate abnormal losses in automotive manufacturing.