The Honest Manufacturing Company has been in operation for 10 years. The company has 2,000 units in beginning Work in Process Inventory, 40% complete as to conversion costs, 16,000 units transferred out to Finished Goods Inventory, and 3,000 units in ending Work in Process Inventory that are 50% complete as to conversion costs. Direct materials are fully added at the beginning of the process. Calculate the equivalent and physical units of production for direct materials and conversion costs. What is included in conversion cost.