Overboard Corporation uses the first-in, first-out method in its process costing system. In the Cutting Department in June, units were 80% complete with respect to conversion in the beginning work in process inventory and 25% complete with respect to conversion in the ending work in process inventory. Other data for the department for June follow:

	Units	Conversion Cost
Beginning work in process inventory	23,300	$ 40,000
Units started into production, and costs incurred during the month	161,000	$ 239,000
Units completed and transferred out	141,000

The cost per equivalent unit for conversion cost is closest to:

Multiple Choice:

a) $1.79

b) $1.40

c) $1.34

d) $1.87