A) THE MATERIALS ARE ADDED AT THE BEGINNING OF THE PROCESS. THE CONVERSION COSTS HAPPEN LIKE ABOVE - EVENLY THROUGHOUT THE PROCESS. Here is an accounting of the PHYSICAL UNITS: BWIP STARTED FINISHED EWIP 2,000,000 clips 40% complete 10,000,000 12,000,000 7,000,000 5,000,000 clips 50% complete 12,000,000 Here is a summary of the costs for the period: DM CONV TOTAL Beginning WIP $ 10,000 $ 100,000 $ 110,000 Current costs 10,000 90,000 100,000 Total $ 20,000 $ 190,000 $ 210,000 16. Let's go. Set up one column for DM and one column for CONVERSION Let's figure out what we REALLY have to do ... how many WHOLE UNITS of work in order to do these 3 things. Make a row for each as follows: 1. To complete the beginning work in process 2. To work on the ones that were started but not finished (EWIP) 3. All the rest (they were BOTH started AND completed) during the period