Exercise 2 Refer to the following information about the Finishing Department in the Davidson Factory for the month of June. Davidson Factory uses the FIFO method of inventory costing. Beginning Work in Process inventory: Physical units... 5,000 units % complete for materials. 70% % complete for labor and overhead. 25% Materials cost from May.. $7,350 Labor and overhead cost from May. $3,125 Product started and completed: Physical units 40,000 units Ending Work in Process inventory: Physical units.... 4,000 units % complete for materials. 40% % complete for labor and overhead . 10% Manufacturing costs for June: Materials $96,975 Labor and overhead... $79,470 Compute equivalent units for direct materials, direct labor and overhead for June.