Procter & Gamble uses process costing for its soap production. The following information is provided for the month of February 2024:
•Beginning Work in Process: 1,500 units (50% complete)
•Units started: 7,000 units
•Ending Work in Process: 2,000 units (70% complete)
•Costs: Beginning WIP ($8,000), Added during the month ($72,000)
Required:
1.Calculate the equivalent units of production for February.
2.Determine the cost per equivalent unit.
3.Prepare the cost reconciliation for February.