Question: Penny Inc. uses process costing. All direct materials are added at the beginning of the process. Information about July's activities is as follows: On

Penny Inc. uses process costing. All direct materials are added at the beginning of the process. Information about July's activities is as follows: On July 1: Beginning inventories Direct materials cost Conversion costs 850 units, 60% complete $5,000 $4,000 During July: Number of units started Direct materials added Conversion costs added On July 31: 15,000 $155,000 $83,520 Ending inventories 1,600 units, 40% complete Using the FIFO method, the cost per equivalent unit for materials used during July (rounded to the nearest cent) was a. $10.65 Ob. $10.331 c. 59.76 Od. $10.78

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