Question: Eastern Oregon Lumber Company grows, harvests, and processes timber for use as building lumber. The following data pertain to the companys sawmill: Work-in-process inventory, January

Eastern Oregon Lumber Company grows, harvests, and processes timber for use as building lumber. The following data pertain to the company’s sawmill:
Work-in-process inventory, January 1
(materials: 60 percent; conversion: 40 percent) ...... 30,000 units
Work-in-process inventory, December 31
(materials: 70 percent; conversion: 60 percent) ...... 15,000 units
During the year the company started 150,000 units in production.

Required
Prepare a physical flow schedule and compute the number of equivalent units of both direct materials and conversion for the year, using the weighted-average method.

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