PepsiCo, Inc. produces snacks using batch costing. In March 2036, the company produces 4 batches of chips costing $1,600,000 in total. Normal loss is estimated at 10% of production. The production yields:

• Chips: 800,000 bags

Required:

• Calculate the cost per unit for chips considering normal losses.
• Account for abnormal losses and calculate the equivalent units.
• Allocate joint costs using the physical units method.
• Determine the cost per equivalent unit for chips.
• Prepare a production cost report showing the cost of production, normal losses, and abnormal losses.