The Cutting Department of Hong Manufacturing has the following production and cost data for July.

Production
Costs
1. Transferred out 10,600 units. Beginning work in process $ 0
2. Started 2,000 units that are 61% complete as to conversion costs
And 100% complete as to materials at July 31. Materials 35,280
Labor 18,200
Manufacturing overhead 25,534

Materials are entered at the beginning of the process. Conversion costs are incurred uniformly during the process.

(a) Determine the equivalent units of production for materials and conversion costs.

(b) Compute unit costs and prepare a cost reconciliation schedule.