Arizaga Corporation manufactures canoes through two departments: Fabrication and Waterproofing. The Fabrication Department attaches fiberglass panels to aluminum frames to create canoes, which are then sent to Waterproofing for sealing. The Fabrication Department began July with 320 canoes that were 20% complete and ended with 540 canoes that were 30% complete, completing 6,700 canoes for the month. The equivalent units related to conversion costs for the Fabrication Department in July is 6,862.