Answer the Following Question(s)using the Information Below

Answer the following question(s) using the information below:
Hawk Ltd.uses process costing in its Fabricating Department.At the beginning of October, it had 12,000 units in beginning work-in-process that were 40% complete with respect to conversion.During October it put 87,000 units into production and completed 89,000 good units.At October 31, there were 3,000 units in ending work-in-process that were 70% complete with respect to conversion.Direct materials are added at the beginning of the process.Inspection occurs at the end of the process and normal spoilage is 6% of good output.Costs related to the beginning inventory were $36,800 for direct materials and $28,600 for conversion costs.During the month, the company issued $280,000 of direct materials and incurred $599,400 of conversion costs.
-Assuming Hawk uses the FIFO method of process costing, the cost per equivalent unit for direct materials and conversion costs respectively are

A) $3.20; $6.40.
B) $3.64; $6.40.
C) $2.81; $6.09.
D) $3.22; $6.42.
E) $3.44; $6.89.

Correct Answer:

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