Matrix Inc. calculates cost for an equivalent unit of production using the FIFO method. Data for July: Work-in-process inventory, July 1 (39,500 units): Direct materials (88% completed) $122,350 Conversion (55% completed) 77,850 Balance in work in process inventory, July 1 $200,200 Units started during July 95,000 Units completed and transferred 110,750 Work-in-process inventory, July 31: Direct materials (88% completed) 23,750 Conversion (55% completed) Cost incurred during July: Direct materials $173,000 Conversion costs 270,500 Cost per equivalent unit for conversion under the FIFO method is calculated to be