Toyota Motor Corporation uses process costing for its car manufacturing process. In August 2027, the company incurs the following costs related to its production process:

• Assembly Department Costs: $80 million
• Paint Department Costs: $30 million
• Quality Control: $10 million
• Supply Chain Logistics: $15 million

Required:

• Allocate production costs between Assembly and Paint departments using the sequential allocation method.
• Determine the cost per vehicle produced assuming 500,000 vehicles manufactured.
• Analyze the impact of cost allocation methods on product costing.
• Discuss the advantages and disadvantages of process costing in automotive manufacturing.
• Prepare a process costing statement for Toyota Motor Corporation.