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 Mixing Department, and 31,000 gallons 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 details 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
Direct materials cost $46,000
Conversion cost $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.)
A) $1.29
B) $2.74
C) $1.25
D) $6.80

A .A)
Whole
Units Percent
Complete Direct
Materials Percent
Complete Conversion
Costs
Completed and
transferred out 31,000 100% 31,000 100% 31,000
Ending work-in-process 7,000 85% 5,950 70% 4,900
Total units
accounted for 38,000 36,950 35,900

Cost of direct materials:
Beginning balance $1,600
Added during January 46,000
Total costs $47,600
Divided by: Equivalent units 36,950
Cost per equivalent unit for direct materials $1.29