Sparky Corporation uses the FIFO method of process costing. The following information is available for February in its Molding Department:

Units: Beginning Inventory: 42,000 units, 100% complete as to materials and 55% complete as to conversion. Units started and completed: 127,000. Units completed and transferred out: 169,000. Ending Inventory: 38,500 units, 100% complete as to materials and 25% complete as to conversion.

Costs: Costs in beginning Work in Process - Direct Materials: $60,000. Costs in beginning Work in Process - Conversion: $65,850. Costs incurred in February - Direct Materials: $401,010. Costs incurred in February - Conversion: $616,150.

Calculate the cost per equivalent unit of materials.

Multiple Choice

a. $3.16

b. $2.88

c. $1.58

d. $1.93

e. $2.42