Process Costing at Procter & Gamble

Values:

Item	Amount
Total Production Cost	$2,000,000
Equivalent Units	80,000

Requirements:

1. Calculate the cost per equivalent unit using the FIFO method.
2. Prepare a reconciliation of units and costs.
3. Compute the cost of goods completed and transferred out.
4. Discuss the benefits of process costing in a mass production environment.