Shiffon Electronics manufactures music players. Its costing system uses two cost categories, direct materials and conversion costs. Each product must pass through the Assembly Department, the Programming department, and the Testing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production. Shiffon Electronics uses weighted-average costing. The following information is available for the month of March 2020 for the Assembly department.

Work in process, beginning inventory	400 units
Conversion costs (40% complete)
Units started during March	840 units
Work in process, ending inventory:	180 units
Conversion costs (65% complete)

The cost details for the month of March are as follows:

Work in process, beginning inventory
Direct materials	$348,500
Conversion costs	$366,000
Direct materials costs added during March	$709,000
Conversion costs added during March	$1,128,000

What is the direct materials cost per equivalent unit during March? (round to the nearest dollar)

• A. $898
• B. $281
• C. $853
• D. $572