Sprinkler Co. utilizes process costing in its manufacturing company for a product that passes through two departments. Data relating to the product processed in Department 2, during March are presented as follows:

Beginning WIP Inventory had total costs of $119,000. Of this amount, $19,000 related to direct materials. The remainder related to conversion costs.

During the period, the following costs were added: $62,080 of direct materials and $396,240 of conversion costs.

Additional information is available as follows:

Physical Units

Percentage of Completion

Beginning WIP

6,000

10% - direct materials 40% - conversion costs

Units brought into production and fully completed during period

29,000

Ending WIP

11,000

40% - direct materials 50% - conversion costs

Required:

a. Compute the equivalent units for the month for Department 2, according to the FIFO method of accounting for units.

b. Calculate the cost per equivalent unit using the FIFO method of costing. Round answer to two decimal places.

c. Prepare cost reconciliation report for the period for Department 2 using the FIFO method of costing.