Question 1

1.    LDR Manufacturing produces a chemical pesticide and uses process costing. There are three processing departmentsMixing, Refining, and Packaging. On January 1, 2012, the Refining Department had 2,000 gallons of partially processed product in production. During January, 32,000 gallons were transferred in from the Mixing Department and 29,000 gallons were completed and transferred out. At the end of the month, there were 5,000 gallons of partially processed product remaining in the Refining Department. See additional details below.

 
Refining Department, beginning balance at January 1, 2012
Quantity: 2,000 units (partially processed.
Cost: $15,600 of costs transferred in
$1,900 of materials cost
$4,500 of conversion cost
$22,000 total account balance

 
Costs added during January
Cost of units transferred in: $222,400
Direct materials cost $45,000
Conversion cost $93,750

 
Refining Department, ending balance at January 31, 2012
Quantity: 5,000 units (partially processed.
% completion for materials cost: 90%
% completion for conversion cost: 75%

 
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 off your calculations to the nearest cent.)