Matrix Inc. calculates cost for an equivalent unit of production using the FIFO method.

Data for July:
Work-in-process inventory, July 1 (34,500 units):
Direct materials (98% completed)	$	122,900
Conversion (45% completed)		77,350
Balance in work in process inventory, July 1	$	200,250
Units started during July		95,000
Units completed and transferred		105,000
Work-in-process inventory, July 31:
Direct materials (98% completed)		24,500
Conversion (45% completed)
Cost incurred during July:
Direct materials	$	185,000
Conversion costs		265,500

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

Top of Form

Multiple Choice

• $2.39.
• $2.64.
• $1.95.
• $2.74.
• $2.79.

Bottom of Form