Department E had 4,000 units in Work in Process that were 40% completed at the beginning of the period at a cost of $13,613. Of the $13,613, $8,006 was for material and $5,607 was for conversion costs. 14,000 units of direct materials were added during the period at a cost of $26,992. 15,000 units were completed during the period, and 3,000 units were 75% completed at the end of the period. All materials are added at the beginning of the process. Direct labor was $33,279 and factory overhead was $19,748. If the average cost method is used what would be the conversion cost per unit (to the nearest cent)?

Select the correct answer.

$1.80

$1.94

$5.33

$3.40