Procter & Gamble uses process costing for its soap production. During January 2024, the following information is provided for the Mixing Department:
•Beginning Work in Process: 1,000 units (30% complete)
•Units started: 9,000 units
•Ending Work in Process: 1,500 units (40% complete)
•Costs: Beginning WIP ($5,000), Added during the month ($45,000)
Required:
1.Calculate the equivalent units of production for January.
2.Determine the cost per equivalent unit.
3.Prepare the cost reconciliation for January.