Timing Technology, Inc., manufactures timing devices. During 20x1, 3,000,000 units were completed and transferred to finished-goods inventory. On December 31, 20x1, there were 470,000 units in work in process. These units were 48 percent complete as to conversion and 100 percent complete as to direct material. Finished-goods inventory consisted of 1,350,000 units. Materials are added to production at the beginning of the manufacturing process, and overhead is applied to each product at the rate of 100 percent of direct-labor costs. There was no finished-goods inventory on January 1, 20x1. A review of the inventory cost records disclosed the following information:

Costs Direct Direct Units Material Labor Work in process, January 1, 20x1 (85% complete as to conversion) 460, 900 $ 340,000 $ 330,409 Units started in production 3, 010,900 Direct-material costs $11, 111, 000 Direct-labor costs $8, 540, 090Materials Conversion Total Total costs to account for Equivalent units Costs per equivalent unit