Pacific Ink had beginning work-in-process inventory of $374,240 on October 1. Of this amount, $158,080 was the cost of direct materials and $216,160 was the cost of conversion. The 28,000 units in the beginning inventory were 40 percent complete with respect to both direct materials and conversion costs.
During October, 48,000 units were transferred out and 14,000 remained in ending inventory. The units in ending inventory were 80 percent complete with respect to direct materials and 40 percent complete with respect to conversion costs. Costs incurred during the period amounted to $1,167,600 for direct materials and $1,511,320 for conversion.
Required:
Compute the cost per equivalent unit for direct materials and for conversion costs using the FIFO method.