Thomas Manufacturing produces a chemical pesticide and uses process costing. There are three processing departments-Mixing. Refining, and Packaging On January 1, the Refining Department had 2,000 gallons of partially processed product in production. During January, 36,000 gallons were transferred in from the Mosing Department, and 31,000 gations were completed and transferred out. At the end of the month, there were 7.000 gallons of partially processed product remaining in the Refining Department. See additional Detais below Refining Department, beginning balance at January 1 Quantity 2,000 units (partially processed) Cost $15,600 of costs transferred in $1,600 of materials cost $4.500 of conversion cost $21,700 total account balance Costs added during January Cost of units transferred in $222,400 O A. $2.74 O B. $6.80 O C. $1.25 OD. $1.29 $21,700 total account balance Costs added during January Cost of units transferred in Direct materials cost Conversion cost 5222 400 546,000 $93.750 Refining Department, ending balance at January 31 Quantity 7,000 units (partially processed) Percent complete for materials cost 85% Percent complete for conversion cost 70% What was the cost per equivalent unit with respect to direct materials costs for the Refining Department in the month of January? Use the weighted average method (Round your calculations to the nearest cent.) O A. $2.74 OB. $6 80 O C. $125 OD. $1.29