1. General Motors produces automobiles using process costing. In July 2025, the assembly department incurs costs of $15 million and produces 5,000 vehicles. At the beginning of the month, there were 500 units in the beginning work in process inventory, and 600 units were in ending work in process inventory, 40% complete for materials and 30% complete for conversion costs.

Required:

• Calculate the equivalent units of production for materials and conversion costs.
• Determine the cost per equivalent unit for materials and conversion costs.
• Allocate costs to completed units and units in ending work in process inventory using the weighted average method.
• Prepare a cost of production report for General Motors.
• Analyze the cost per unit differences between completed units and units in ending work in process inventory.