Process Costing at Johnson & Johnson

• Values:
  • Beginning Work in Process: $70,000
  • Total Manufacturing Costs: $800,000
  • Ending Work in Process: $60,000
  • Units Completed: 60,000 units

• Requirements:
  1. Calculate the cost per equivalent unit using the FIFO method.
  2. Determine the cost of goods manufactured and transferred out.
  3. Discuss the advantages of process costing in pharmaceuticals.
  4. Suggest ways to optimize process costing at Johnson & Johnson.