1. Procter & Gamble Company manufactures consumer goods using process costing. In September 2031, the company incurs costs of $120 million in its production department. The production data for the month is as follows:
   • Beginning work in process: 20,000 units, 40% complete
   • Units started and completed: 100,000 units
   • Ending work in process: 10,000 units, 30% complete
   • Cost allocation: Direct materials $1.50 per unit, Direct labor $1.00 per unit, Factory overhead $0.75 per unit

Required:

• Calculate the equivalent units of production for direct materials and conversion costs (direct labor + factory overhead).
• Determine the cost per equivalent unit for direct materials and conversion costs using the weighted average method.
• Allocate costs to completed units and units in ending work in process.
• Prepare a cost reconciliation report for Procter & Gamble Company.
• Discuss the advantages of process costing in manufacturing consumer goods.