Johnson & Johnson produces pharmaceutical products in batches. In February 2026, the company manufactures 4 batches of antibiotics with varying costs per batch:

Batch	Direct Materials ($)	Direct Labor ($)	Factory Overhead ($)
Batch 1	500,000	200,000	150,000
Batch 2	550,000	210,000	160,000
Batch 3	525,000	205,000	155,000
Batch 4	560,000	215,000	165,000

Required:

• Calculate the total manufacturing costs for Johnson & Johnson in February 2026.
• Determine the cost per unit for each batch produced.
• Prepare a batch costing statement showing profit per batch.
• Analyze the profitability of each batch and recommend pricing strategies.
• Discuss the advantages of batch costing for pharmaceutical production.