Exercise 6.36 Carla Company manufactures its product on an assembly line. The firm began production in year one. During the year, work was begun on 43,100 units. The assembly line has 1,100 "slots," so at the end of year one, WIP ending consisted of 1,100 units 50% complete. In year two, the firm started 48,400 units and ended the year with a full assembly line estimated to be 50% complete. A slowdown occurred during year three, so the firm started only 24,100 units. Nonetheless, year three ended with the assembly line full, and the units were estimated to be 50% complete. Direct materials are added at the beginning of the process, and conversion costs are incurred evenly throughout production. Calculate a summary of physical units by determining the beginning WIP, units started, ending inventory, and units completed each year. Year 1 Year 2 Year 3 Beginning inventory Units started Ending inventory Units completed Determine the equivalent units for direct materials and conversion costs for each of the three years under the weighted average method. Year 1 Year 2 Year 3 Direct Materials: Units completed Ending inventory Equivalent units Year 1 Year 2 Year 3 Conversion Costs: Units completed Ending inventory Total Equivalent units