LDR Manufacturing Produces a Pesticide Chemical and Uses Process Costing

Multiple Choice

LDR Manufacturing produces a pesticide chemical and uses process costing. There are three processing departments-Mixing, Refining, and Packaging. On January 1, 2012, the first department, Mixing, had a zero beginning balance. During January, 40,000 liters of chemicals were started into production. During the month, 32,000 liters were completed, and 8,000 remained in process, partially completed. In the Mixing Department, all raw materials are added at the beginning of the production process, and conversion costs are applied evenly through the process.
At the end of the month, LDR calculated equivalent units in the Mixing Department as shown below:
$$\begin{array} { | l | r | r | r | r | } \hline \text { EQUIVALENT UNITS } & & & \text { Equinulent Units } & \\\hline \text { Units to account for } & & \text { Transferred In } & \text { Direct Mtls Cost } & \text { Conversion Cost } \\\hline \text { Completed } & 32,000 & 0 & 32,000 & 32,000 \\\hline \text { End bal WIP * } & 8,000 & 0 & 8,000 & 4,800 \\\hline & 40,000 & 0 & 40,000 & 36,800 \\\hline \\\hline \begin{array} { c } * \% \text { of completion for } \\\text { direct materials costs: }\end{array} & & & 100 \% \\\hline \begin{array} { c } \% \text { of completion for } \\\text { conversion costs: }\end{array} & & & 60 \% & \\\hline\end{array}$$
During January, the Mixing Department incurred $48,000 in direct materials costs and $211,600 in conversion costs. How much was the cost per equivalent unit for materials and for conversion costs?
(Please round all amounts to the nearest cent.)

A) $6.00 for materials, $44.08 for conversion
B) $1.20 for materials, $6.61 for conversion
C) $1.50 for materials, $6.61 for conversion
D) $1.20 for materials, $5.75 for conversion