Ford Motor Company uses process costing for its engine assembly line. In March 2040, the following data is provided:

• Beginning Work-in-Process: 10,000 units (60% complete)
• Units Started: 40,000 units
• Ending Work-in-Process: 5,000 units (40% complete)
• Total Costs: $8,000,000

Requirements:

• Calculate the equivalent units of production.
• Determine the cost per equivalent unit.
• Prepare a production cost report.
• Analyze the impact of work-in-process inventory on costs.