Watson Waters has gathered the following information.

Units in beginning work in process	-0-
Units started into production	40,000
Units in ending work in process	6,000
Percent complete for conversion costs in ending work in process	40%

Costs incurred: Direct materials Direct labor Overhead

$72,000 $81,000 $101,000

Instructions

(a) Compute the physical units to be accounted for and physical units accounted for.

(b) Determine the equivalent units of production for (1) materials and (2) conversion costs.

(c) Compute the unit costs of production.

(d) Prepare a cost reconciliation schedule.