Equivalent Units CalculationsFIFO Method Terrace Corporation makes an industrial cleaner in two sequential departments, Compounding and Drying. All materials are added at the beginning of the process in the Compounding Department. Conversion costs are added evenly throughout each process. Terrace uses the FIFO method of process costing. In the Compounding Department, begin- ning work-in-process was 2,000 pounds (60% processed), 36,000 pounds were started, 34,000 pounds were transferred out, and ending work-in-process was 70% processed. Calculate equivalent units for the Compounding Department for August 2019.