ABC Company uses process costing to track its costs in two sequential production departments: Forming and Finishing. The following information is provided regarding the Forming department.

Forming Department Month Ended July 31

Unit information

Beginning work in process, July 1 --- 10,000

Started into production during July --- 21,000

Completed and transferred to Finishing department during July --- 19,000

Ending work in process, July 31 (40% complete as to direct materials and 45% complete as to conversion costs) --- 12,000

Cost information

Beginning work in process as of July 1 consists of $13,000 of direct materials costs and $6,500 of conversion costs) --- $19,500

Direct materials used in July --- $34,000

Conversion costs incurred in July --- $14,850

(a) Calculate the equivalent units for direct materials.

(b) Calculate the cost per equivalent unit for direct materials.