Tesla, Inc. manufactures electric vehicles using process costing. In February 2028, the company incurs costs of $100 million. The production process involves two departments: Assembly and Battery. Costs and production details are as follows:

• Assembly Department: Costs $60 million, produces 5,000 vehicles.
• Battery Department: Costs $40 million, produces 10,000 batteries.

Required:

• Calculate the cost per unit for Assembly and Battery departments.
• Determine the equivalent units of production for each department.
• Allocate joint costs to Assembly and Battery departments using the physical units method.
• Analyze the cost allocation process in a multi-department manufacturing environment.
• Prepare a process costing statement for Tesla, Inc.