Zebra Company manufactures Product Z in a two-stage production cycle in Departments A and B. Materials are added at the beginning of the process in Department B. Zebra uses the weighted-average method. Conversion costs for Department B were 40% complete as to the 24,000 units in the beginning work-in-process (WIP) inventory and 50% complete as to the 33,600 units in the ending work-in-process inventory. 48,000 units were completed and transferred out of Department B during October. An analysis of the costs relating to work-in-process inventories and production activity in Department B for October follows:

	Transferred- in Costs	Materials Costs	Conversion Costs
WIP, October 1:	$ 48,000	$ 14,400	$ 4,800
Costs added in October	115,200	26,400	21,120

The total cost per equivalent unit transferred-out for October of Product Z, rounded to the nearest penny, was:

Multiple Choice

• $2.75.

• $2.95.

• $2.90.

• $2.80.

• $2.85.