Gore’s Green Chemicals had beginning WIP inventory of $98,260 on October 1. Of this amount, $31,400 was the cost of direct materials, and $66,860 was for conversion costs. The 8,000 units in the beginning inventory were 30 percent complete with respect to both direct materials and conversion costs.

During October, 17,000 units were transferred out, 500 were spoiled, and 4,500 remained in the ending inventory. Spoiled units were 100 percent complete with respect to materials and 50 percent complete with respect to conversion costs when they were found to be spoiled. The units in the ending WIP inventory were 80 percent complete with respect to direct materials and 40 percent complete with respect to conversion costs. Costs incurred during the period amounted to $390,600 for direct materials and $504,640 for conversion costs.

Required

a. Compute the cost per equivalent unit for direct materials and for conversion costs using the weighted-average method.