Loren Inc. manufactures products that pass through two or more processes. During April, equivalent units were computed using the FIFO method:

Units started and completed 4,600

Units in BWIP × Fraction to complete (60 percent) 840

Units in EWIP × Fraction complete (4,000 × 60 percent) 2,400

Equivalent units of output (FIFO) 7,840

April’s costs to account for are as follows:

BWIP (40 percent complete) $ 1,120

Materials 10,000

Conversion cost 4,000

Total $15,120

Required:

1. Calculate the unit cost for April using the FIFO method. Round to two decimal places.

2. Using the FIFO method, determine the cost of EWIP and the cost of the goods transferred out.