Water Goggles
Shaping Department
Month Ended January 31
	Step 1	Step 2
	Flow of	Equivalent Units
	Physical	Direct	Conversion
Flow of Production	Units	Materials	Costs
Units to account for:
Beginning work in process, January 1	0
Started in production during January	62,000
Total physical units to account for	62,000
Units accounted for:
Completed and transferred out during January	48,000	48,000	48,000
Ending work in process, January 31	14,000	14,000	4,620 *
Total physical units accounted for	62,000
Total equivalent units		62,000	52,620
*14,000 units each 33% complete = 4,620 equivalent units

The direct materials are added at the beginning of the process, but conversion costs are incurred evenly throughout the process. Suppose the ending work in process inventory is 38%

of the way through the shaping process rather than 33% of the way through. Compute the total equivalent units of direct materials and conversion costs.

Water Goggles
Shaping Department
Equivalent Units
	Equivalent Units
	Direct	Conversion
Flow of Production	Materials	Costs
Completed and transferred out during January
Ending work in process, January 31
Total equivalent units