Johnson & Johnson manufactures pharmaceutical products using process costing. In January 2027, the company incurs costs of $80 million and produces 1 million units. Due to contamination, 100,000 units were lost.

Required:

• Calculate the cost per unit produced by Johnson & Johnson.
• 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 reduce the occurrence of abnormal losses in pharmaceutical manufacturing.