Zuniga, Inc $=250$ Units $40 \%$ Complete
Direct Materials Costs

Zuniga, Inc. uses a process costing system. During May, 1,200 units were transferred into Department 2 at a cost of $38,040. Direct materials are added at the beginning of the process. Additionally: On May 1: Beginning inventories $=250$ units, $40 \%$ complete
Direct materials costs $=\$ 1,250$
Conversion costs $=\$ 1,356$
Transferred-in costs $=\$ 2,560$

During May: Direct materials costs incurred $=\$ 6,000$ Conversion costs incurred $=\$ 17,013$

On May 31: Ending Inventories $=350$ units, $20 \%$ complete Using the FIFO method, the cost per equivalent unit for transferred-in units was:

A) $28.00
B) $31.70
C) $26.23
D) $33.87