Question: Process Costing at PepsiCo Values: Beginning Work in Process Inventory: $100,000 Total Manufacturing Costs: $1,500,000 Ending Work in Process Inventory: $75,000 Units Completed and Transferred

Process Costing at PepsiCo

    • Values:
      • Beginning Work in Process Inventory: $100,000
      • Total Manufacturing Costs: $1,500,000
      • Ending Work in Process Inventory: $75,000
      • Units Completed and Transferred Out: 25,000 units
    • Requirements:
      1. Calculate the cost per equivalent unit using the FIFO method for PepsiCo.
      2. Compute the cost of goods manufactured and transferred out.
      3. Discuss the advantages of process costing in the beverage industry.
      4. Recommend ways to optimize process costing at PepsiCo.

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