Ch16 Case Study Assignment - Part 2 The Magicians Company uses the Process Cost System and the Average Costing Method. Materials and Conversion costs are added evenly throughout the process. The following production data are for the Mixing Dept for the month of June (Round unit costs to two decimal places): $400 325 $725 Production Costs Work in process, June 1st: Direct Materials: 100% complete Conversion Costs: 70% complete Costs incurred during production in June: Direct Materials Conversion Costs Total Costs for June $5,000 6,500 11,500 $12,225 Production Report Units 200 Work in process, June 1st Units started in production during June Units completed & transferred out Work in process, June 30th (DM 100%; CC 25%) 2,500 1,900 800 b. Explain the difference between Physical units in Step One and Equivalent units in Step Two using the Weighted-Average Method