Fleming, fleming, and Johnson, a local CPA firm, provide the following data for individual returns processed for March (outputs is measured in number of returns):

Units, beginning work in process ---

Units started 6,000

Units completed 5,000

Units, ending in work in process (50% complete) 1,000

Total Production costs $5,500

1. Prepare a physical flow schedule

2. Prepare an equivalent units schedule. Explain why output is measured in equivalent units.

3. What if EWIP is 80 percent complete? How would this change affect the physical flow schedule? The equivalent units schedule?