O'Leary Company manufactures Product Z in a two-stage production cycle in Departments A and B. Materials are added at the beginning of the process in Department B. O'Leary uses the weighted-average method. Conversion costs for Department B were 40% complete as to the 5,000 units in the beginning work-in-process (WIP) inventory and 50% complete as to the 7,000 units in the ending work-in-process inventory. 10,000 units were completed and transferred out of Department B during October. An analysis of the costs relating to work-in process inventories and production activity in Department B for October follows TransferredMaterials Conversion in Costs $10,000 24,000 Costs $1,000 4,400 osts $3,000 5,500 WIP, October 1: Costs added in October The total cost per equivalent unit transferred-out for October of Product Z, rounded to the nearest penny, was $2.75 $2.80 $2.85 $%2.90. $%2.95