Process Costing at Procter & Gamble

Values:

• Total Production Costs: $2,500,000
• Equivalent Units: 90,000

Requirements:

1. Calculate the cost per equivalent unit using the weighted average method.
2. Prepare a reconciliation of units.
3. Compute the cost of goods transferred out and the ending inventory.
4. Discuss the challenges of applying process costing in a large-scale production environment.