1. Ford Motor Company produces engines using process costing. In April 2037, the company processes 10,000 units of raw materials costing $500,000. Production results in 8,000 completed engines and 2,000 units in ending work-in-progress.
   • Direct Material Costs: $300,000
   • Direct Labor Costs: $100,000
   • Overhead Costs: $100,000

Requirements:

• Calculate the cost per equivalent unit using the weighted average method.
• Perform variance analysis for direct materials, labor, and overhead.
• Prepare a cost reconciliation statement.
• Evaluate the efficiency and effectiveness of the production process.
• Recommend improvements based on the variance analysis.