Gatorade Company has recently entered the market for quality energy drinks. These drinks are popular. Gatorade uses process costing to account for the production of these canned energy drinks. Direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. Equivalent units have been calculated to be 14,000 units for materials and 11,150 units for conversion costs. Beginning inventory consisted of $8,000 in materials and $8,800 in conversion costs. April costs were $50,400 for materials and $47,820 for conversion costs. Ending inventory still in process was 5,700 units (100% complete for materials, 50% for conversion). The cost per equivalent unit for conversion costs using the weighted average method would be:

Multiple Choice

• $5.08

• $1.27

• $4.68

• $10.06