Train Co. utilizes process costing for its main product, toy trains. Data relating to toy trains processed in Department 1, Moulding, during August are presented as follows:

Toy Trains

Percentage Completed*

Work in Process, beginning

40,000

70%

Started into Process during Period

60,000

Work in Process, ending

20,000

30%

* relates to conversion costs

* related to conversion costs

Materials are added at the beginning of the process in Department 1.

Costs in beginning work in process inventory were $250,000 of direct materials and conversion cost of $500,000. Costs added during the period were $390,000 for direct materials and conversion costs of $780,000.

The company uses the FIFO method of accounting for units.

Required:

a. Prepare quantity schedule.

b. Compute the equivalent units for the period according to theFIFO methodof accounting for units.

c. Calculate the cost per equivalent unit using theFIFO method. Round answer to two decimal places.