PepsiCo, Inc. uses process costing for its beverage production. The following information is provided for the month of August 2024:
•Beginning Work in Process: 5,000 units (80% complete)
•Units started: 14,000 units
•Ending Work in Process: 4,000 units (90% complete)
•Costs: Beginning WIP ($25,000), Added during the month ($225,000)
Required:
1.Calculate the equivalent units of production for August.
2.Determine the cost per equivalent unit.
3.Prepare the cost reconciliation for August.