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 inventoryJanuary 1

( Materials 60% and Conversion 40%) 43,400 units

Work in process inventory December 31

(Materials 70% and Conversion 60%) 21,700 units

During the year the company started 204,000 units in production.

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.