- Quantities - How many units were "started into production"? 0 Costs - What is the units cost? HEALTHY COMPANY Welding Department Production Cost Report For the Month Ended February 28, 2017 Equivalent Units Physical Conversio Quantities Units Materials n Costs (Step 1) (Step 2) Units to be accounted for Work in process, February 1 15,000 Started into production Total units Units accounted for Transferred out Work in process, February 28 Total units Conversion Costs Materials Costs Total Unit costs (Step 3) Total cost Equivalent units Unit costs (a) + (b) Costs to be accounted for Work in process, February 1 Started into production Total costs Cost Reconciliation Schedule (Step 4) Costs accounted for Transferred out (55,000 X $5.50) Work in process, February 28 Materials (11,000 X $3.00) Conversion costs (2,200 X $2.50) Total costs