Thomas Manufacturing Produces a Chemical Pesticide and Uses Process Costing

Thomas Manufacturing produces a chemical pesticide and uses process costing. There are three processing departments-Mixing, Refining, and Packaging. On January 1, the Refining Department had 2000 gallons of partially processed product in production. During January, 36,000 gallons were transferred in from the Mixing Department, and 31,000 gallons were completed and transferred out. At the end of the month, there were 7000 gallons of partially processed product remaining in the Refining Department. See additional details below. Refining Department, beginning balance at January 1
$\begin{array}{ll}\text { Quantity: } & 2000 \text { units (partially processed } \\\text { Cost: } & \$ 15,600 \text { of costs transferred in }\\&\text {\( \$ 1600 \) of materials cost}\\&\text {\( \$ 4500 \) of conversion cost}\\&\text {\( \$ 21.700 \) total account balance}\end{array}$
Costs added during January
$$\begin{array} { l l } \text { Cost of units transferred in } & \$ 22,400 \\\text { Direct materials cost } & \$ 46,000 \\\text { Conversion cost } & \$ 93,750\end{array}$$ Refining Department, ending balance at January 31
$$\begin{array} { l l } \text { Quantity: } & 7000 \text { wnits (partially processed) } \\\text { Percent complete for materials cost: } & 85\% \\\text { Percent complete for conversion cost: } & 70 \%\end{array}$$ What was the cost per equivalent unit with respect to direct materials costs for the Refining Department in the month of January? Use the weighted-average method. (Round your calculations to the nearest cent.)

A) $1.29
B) $2.74
C) $1.25
D) $6.80