The following information relates to Department Z for the month of July, the sole processing department of Company ABC. 23,000 units (5,000 units from Beginning WIP and 18,000 units started and completed during July) were transferred out of the department to finished goods. 2,000 units remain in the department at the end of July. A calculation of equivalent units for work performed during July appears below:

	Equivalent Units	Equivalent Units
	Direct Materials	Labor and Overhead
Beginning WIP	0	1,500
Units started and Completed	18,000	18,000
Ending WIP	2,000	1,600
Total	20,000	21,100

Refer to Figure 1. Assume beginning work-in-process costs from the prior month total $13,000 and that current month costs for direct materials, direct labor, and factory overhead total $18,000, $8,000, and $10,000 respectively. Department Zs cost per equivalent unit of production for materials using the FIFO method would be

A. $.96

B. $1.04

C. $.90

D. $.10

E. $1.20