Process Costing at Nestl Values: Beginning Work in Process Inventory: $90,000 Total Manufacturing Costs: $1,200,000 Ending Work in Process Inventory: $60,000 Units Completed and Transferred

Process Costing at Nestlé

• Values:
  • Beginning Work in Process Inventory: $90,000
  • Total Manufacturing Costs: $1,200,000
  • Ending Work in Process Inventory: $60,000
  • Units Completed and Transferred Out: 30,000 units

• Requirements:
  1. Calculate the cost per equivalent unit using the weighted average method for Nestlé.
  2. Compute the cost of goods manufactured and transferred out.
  3. Discuss the advantages of process costing in the food industry.
  4. Recommend ways to optimize process costing at Nestlé.