The Cutting Department of Arizona Manufacturing has the following production and cost data for July.

Production Costs 1. Transferred out 12,000 units. Beginning work in process $ -0- 2. Started 1,500 units that are 30% Materials 65,475 finish as to conversion Labor 22,200 costs and 100% complete as Manufacturing overhead 28,845 to materials at July 31.

Materials are entered at the beginning of the process. Conversion costs are incurred uniformly during the process.

Instructions (a) Determine the equivalent units of production for (1) materials and (2) conversion costs. (b) Compute unit costs and make a cost reconciliation schedule.