An appliance manufacturer has an assembly line for making refrigerators. At the beginning of the year, the company had 300 refrigerators on the assembly line that were 40 percent complete on average. The appliance manufacturer started and completed another 5,000 refrigerators. At the end of the year, another 500 units were still on the assembly line and 30 percent complete on average. During the year, the appliance manufacturer had costs of $2 million.

a. How many equivalent units were produced during the year?

b. What is the cost per equivalent unit of refrigerators worked on during the year?