LDR Manufacturing produces a pesticide chemical and uses process costing. There are three processing departments?Mixing, Refining, and Packaging. On January 1, 2012, the Refining Department had 2,000 gallons of partially processed product in production. During January, 32,000 gallons were transferred in from the Mixing Department and 29,000 gallons were completed and transferred out. At the end of the month, there were 5,000 gallons of partially processed product remaining in the Refining Department. See additional details below.

For the Refining Department in the month of January, what was cost per equivalent unit with respect to conversion costs? (Use the weighted average method and round your calculations to the nearest cent.)

A) $1.40

B) $3.00

C) $1.34

D) $2.86

Refining Department, beginning balance at January 1, 2012 Quantity: 2,000 units (partially processed) $15,600 of costs transferred in Cost: $1,900 of materials cost $4,500 of conversion cost $22,000 total account balance Costs added during January Cost of units transferred in: Direct materials cost $222,400 $45,000 $93,750 Conversion cost Refining Department, ending balance at January 31, 2012 Quantity: 5,000 units (partially processed) % completion for materials cost: 90% % completion for conversion cost: 75%