Nestl S.A. manufactures food products using batch costing. In April 2031, the company produces 4 batches of chocolate with the following costs: Batch 1: Direct

Nestlé S.A. manufactures food products using batch costing. In April 2031, the company produces 4 batches of chocolate with the following costs:

• Batch 1: Direct materials $30 million, Direct labor $15 million, Factory overhead $10 million
• Batch 2: Direct materials $32 million, Direct labor $16 million, Factory overhead $11 million
• Batch 3: Direct materials $31 million, Direct labor $15.5 million, Factory overhead $10.5 million
• Batch 4: Direct materials $35 million, Direct labor $17 million, Factory overhead $12 million

Required:

• Calculate the total manufacturing costs for each batch.
• Determine the cost per unit for each batch produced.
• Analyze the profitability of each batch based on batch costing.
• Discuss strategies to improve profitability in batch production.
• Prepare a batch costing statement for Nestlé S.A.