S&S Co. uses a FIFO process costing system to account for the costs of two departments. Department 2 receives units from Department 1 and applies conversion costs evenly throughout the process. In Department 2, direct materials are added wher product is 40% complete. Inspection occurs when production is 100% complete. Normal spoilage is 3% of good units completed and transferred out. At the beginning of December 2017, Department 2 has 1,060 units in WIP. These units were 50% complete, with $24,000 transferred-in cost, $15,900 direct material and $13,000 conversion costs. During the month, 10,800 units were transferred into Department 2 at a cost of $262,419. Department 2 incurred material costs of $140,432 and conversion costs of $453,400 in December. 9,500 units were completed and transferred out. At the end of the month, there are 1,800 units in WIP. These units were 30% complete. Required: 1 & 2 (read carefully what you are required to do steps 1-4 only) 1. Calculate the equivalent units in Department 2 using the FIFO method including the physical unit reconciliation. (13 marks)