John Harbeck is confused about computing physical units. Explain to John how physical units are to be accounted for and physical units accounted for are determined. Solution Physical units are actual units which are shown as actual units irrespective of the stage of completion. Physical units to be accounted for consist of beginning work in process inventory and units started during the period irrespective of the fact which method has been used for calculating the equivalent units. On the other hand units accounted for consists of units completed and transferred out to next department or finished goods and ending work in process inventory..