In Ramirez Company, materials are entered at the beginning of each process. Work in process inventories, with the percentage of work done on conversion costs, and production data for its Sterilizing Department in selected months during 2010 are as follows.

Instructions(a) Compute the physical units for January and May.(b) Compute the equivalent units of production for (1) materials and (2) conversion costs for eachmonth.

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Beginning Work in Process Conversion Ending Work in Process Conversion Units Transferred Out 7,000 Month January March May July Units Units 2,000 3,000 5,000 1,500 Cost% Cost% 60 12,000 16,000 10,000 30 80 40