Penny, Inc. employs a process costing system. Direct materials are added at the beginning of the process. Here is information about July's activities: On July 1: Beginning inventories 850 units, 60% complete Direct materials cost $5,000 Conversion costs $4,000 During July: Number of units started Direct materials added Conversion costs added 15,000 $ 155,000 $83,520 On July 31: Ending inventories 1,600 units, 40% complete Using the FIFO method, the cost per equivalent unit for materials used during July was $10.78 $10.33 $9.78 $10.65