QUESTION 19 Penny, Inc. employs a process costing system. Direct materials are added at the beginning of the process. Here is information about July's activities: 1 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 M 15,000 S155,000 $83,520 On July 31: Ending inventories 1.600 units, 40% complete Using the FIFO method, the number of equivalent units of conversion costs was a. 15,850 b. 14,550 c. 14,380 d. 14,400