Instructions

Thomas Manufacturing produces a chemical pesticide and uses process costing. There are three processing departmentsMixing, Refining, and Packaging. On January 1, the Refining Department had 2,000 gallons of partially processed product in production. During January, 36,000 gallons were transferred in from the Mixing Department, and 31,000 gallons were completed and transferred out. At the end of the month, there were 7,000 gallons of partially processed product remaining in the Refining Department. See additional details below.

Refining Department, beginning balance on January 1

Quantity: 2,000 units (partially processed)

Cost: $15,600 of costs transferred in

$1,600 of materials cost

$4,500 of conversion cost

$21,700 total account balance

Costs added during January

Cost of units transferred in $222,400

Direct materials cost $46,000

Conversion cost $93,750

Refining Department, ending balance on January 31

Quantity: 7,000 units (partially processed)

Percent complete for materials cost: 85%

Percent complete for conversion cost: 70%

What was the cost per equivalent unit with respect to direct materials costs for the Refining Department in the month of January? Use the weighted-average method. (Round your calculations to the nearest cent.)

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