Stuart’s Oil Refinery runs on a 24/7 clock. For the month of January, it had 20,000 gallons in process at the beginning of the month, added 400,000 gallons to the process, and had 30,000 gallons in process at the end, 50% completed.

REQUIRED:

a. What are the equivalent units of production for Stuart’s Oil Refinery in January?

b. If materials cost $104.16 per barrel, and there are 42 gallons in each barrel, what is the materials cost per gallon? Round your answer to the nearest penny.

c. If conversion costs are $31.50 a barrel, and there are 42 gallons in each barrel, what is the conversion cost per gallon? Round your answer to the nearest penny.