Slick Designs began making high end office furniture in January. The companys executive desks are produced in two departments: Cutting and Finishing. Component kits are produces in the Cutting Department and then transferred to the Finishing Department for trimming and assembly. During its first month of operations, the Cutting Department started 15,000 executive desk kits. January direct materials costs in the Cutting Department totaled $600,000, and conversion costs totaled $590,000.

Ending inventory on January 31 consisted of 4,000 partially processed component kits. The units were 100% complete with respect to direct materials, but only 20% complete with respect to conversion.

1. Compute the cost per equivalent unit of input resource for the Cutting Department in January.

2. Compute the total cost assigned to the Cutting Departments ending inventory on January 31.