Northern Washington Lumber Company grows, harvests, and processes timber for use as building lumber. The following data pertain to the companys sawmill:

Work-in-process inventory, January 1 (direct materials: 60%, conversion: 40%)	30,000	units
Work-in-process inventory, December 31 (direct materials: 70%, conversion: 60%)	15,000	units

During the year the company started 180,000 units in production.

Required:

1. Prepare a physical flow schedule.

2. Compute the number of equivalent units of both direct materials and conversion for the year, using the weighted-average method.