PepsiCo, Inc. uses process costing for its beverage production. The following information is provided for the month of July 2024:
•Beginning Work in Process: 4,000 units (70% complete)
•Units started: 12,000 units
•Ending Work in Process: 3,500 units (80% complete)
•Costs: Beginning WIP ($20,000), Added during the month ($180,000)
Required:
1.Calculate the equivalent units of production for July.
2.Determine the cost per equivalent unit.
3.Prepare the cost reconciliation for July.