Lights Incorporated calculates cost for an equivalent unit of production using the FIFO method.

Data for July:
Work-in-process inventory, July 1 (34,000 units):
Direct materials (99% completed)	$ 122,850
Conversion (44% completed)	77,300
Balance in work in process inventory, July 1	$ 200,150
Units started during July	94,500
Units completed and transferred	104,050
Work-in-process inventory, July 31:
Direct materials (99% completed)	24,450
Conversion (44% completed)
Cost incurred during July:
Direct materials	$ 184,500
Conversion costs	265,000

Cost per equivalent unit for conversion under the FIFO method is calculated to be:

Multiple Choice

$1.95.

$2.40.

$2.65.

$2.75.

$2.80.