**SHOW AND EXPLAIN YOUR WORK*

Guo Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory' in the first processing department consisted of 500 units. The costs and percentage completion of these units in beginning inventory were: A total of 9.700 units were started and 9.100 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month: The ending inventory' was S5% complete with respect to materials and 75% complete with respect to conversion costs. The cost per equivalent unit for conversion costs for the first department for the month is closest to: A) $37.11 B) $38.14 C) $40.05 D) $37.92