Process Costing at Procter & Gamble

Values:

Item	Amount
Total Production Cost	$2,500,000
Equivalent Units	90,000

Requirements:

1. Calculate the cost per equivalent unit using the weighted average method.
2. Prepare a reconciliation of units.
3. Compute the cost of goods transferred out and the ending inventory.
4. Discuss the challenges of applying process costing in a large-scale production environment.