The following information is available for Department Z for the month of July:

UnitsCostWork in process, July 1 (70% complete) 2,000

Direct materials $ 6,000

Direct labor 3,000

Manufacturing overhead 4,000

Total work in process, July 1 $13,000

Started in July 20,000

Costs added:Direct materials $18,000 Direct labor8,000

Manufacturing overhead10,000

Total costs added during July $36,000

Work in process, July 31 (7.5% complete)2,000

materials are added at the beginning of the process. (round unit cost to two decimal places.)

Department Z's cost per equivalent unit of production for conversion costs using FIFO method would be

a. $1.18

b. $1.02

c. $0.85

d. $0.73