3. Assume Towery Company uses a process costing system based on the FIFO method. Towery's accountant produces the following equivalent unit calculations for the month of July for the first department: Where do the units come from? Beginning Inventory 700 Where do the units go? Complete/Transferred Beginning Inventory Started and Completed Ending Inventory Total Mon 700 0% 4,100 100%. 900 100% 5,700 Equivalent Units Direct % in Materials Mon 1 0 60% 4,100 100% 900 70% 5,000 Started Total 5.000 5,700 Also assume that the beginning inventory had accumulated $2.850 of materials and $7,930 of conversion costs in the previous month. During the month of July, current costs included $51,100 of materials and $79,310 of conversion costs. Calculate the average cost per equivalent unit for materials costs for the month of July. A) B) $0.14 $0.57 $6.80 $7.57 $10.22