)The True Manufacturing Company has 4,000 units in beginning Work in Process Inventory, 25% complete as to conversion costs, 16,000 units transferred out to Finished Goods Inventory, and 2,500 units in ending Work in Process (WIP) Inventory that are 20% complete as to conversion costs. Direct materials are all added at the beginning of the process.

Calculate the equivalent units of ending WIP inventory for direct materials and conversion costs. Explain the difference between an equivalent unit and a physical unit.