Department 2 Is the Second of Three Sequential Processes

Multiple Choice

Department 2 is the second of three sequential processes.All materials are added at the beginning of processing in Department 2.During October,Department 2 reported the following data:
$\begin{array}{|l|l|l|}\hline &\text { Number of units } & \text { Conversion cost } \\&&\text { percentage complet }\\ \hline \text { Units started } & 60,000 & \\\hline \text { Completed and transferred } & 50,000 & \\\hline \text { Work in process, October 1 } & 26,000 &60 \% \\\hline \text { Work in process, October 31 } & 36,000 &20 \% \\ \hline\end{array}$

$$\begin{array} { | l | r | r | r | } \hline \text { Costs for October } & \text { Transferred In } & \text { Materials } & \text { Conversion Cost } \\\hline \begin{array} { l } \text { Work in process, } \\\text { October 1 }\end{array} & \$ 45,000 & \$ 25,000 & \$ 54,000 \\\hline \text { Added during the } & 8 1 , 0 0 0 & 115,000 &3 1 5 , 0 0 0\\ \text { month } & & & \\\hline\end{array}$$
The company uses the weighted-average method in its process costing system.To the nearest cent,what is the cost per equivalent unit on the production report for conversion costs?

A) $5.51.
B) $6.45.
C) $6.30.
D) $7.38.