Klassis Manufacturing uses a process-costing system to manufacture Dust Density Sensors for the mining industry. The following information pertains to operations and costs for the month of , Year 5.

	Units
Beginning work-in-process inventory, May 1	10,000
Started in production during May	134,000
Completed production during May	49,000
Ending work-in-process inventory, May 31	95,000

Beginning inventory costs are: materials, $62,000;direct labor, $36,000;and factory overhead, $19,000.

Costs incurred during May are: materials used, $478,000; direct labor, $194,000;and factory overhead, $408,000.

The beginning inventory was 60% complete for materials and 30% complete for conversion costs. The ending inventory was 60% complete for materials and 32% complete for conversion costs. Using the weighted-average method, the equivalent-unit conversion cost for is: (Round your answer to the nearest cent.)

1. $8.27

2. $7.58

3. $7.37

4. $13.41