Penny, Inc. employs a process costing system. Direct materials are added at the beginning of the process. Information about Julys activities is as follows:

On July 1:
Beginning inventories	850 units, 60% complete
Direct materials cost	$5,000
Conversion costs	$4,000
During July:
Number of units started	15,000
Direct materials added	$155,000
Conversion costs added	$83,520
On July 31:
Ending inventories	1,600 units, 40% complete

16. Using the FIFO method, the cost per equivalent unit for materials used during July was

	a.	$10.78
	b.	$10.33
	c.	$9.78
	d.	$10.65

THE ANSWER IS B, $10.33 BUT I DON'T KNOW HOW THEY GOT THE ANSWER