physical direct conversion units materials cost WIP beginning balance 300 18000 12000 degree of completion at beg WIP 100% 40% units started 7200 good units completed 7000 WIP ending balance 100 100% 50% degree of completion at ending WIP 43200 36650 total cost added 5% normal spoilage as percentage of good units degree of completion of spoilage 100% 100% If the company uses FIFO method, Compute the equivalent units of direct materials