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% completedirect materials cost $5,000conversion costs $4,000during july: number of units started 15,000direct materials added $155,000conversion costs added $83,520on july 31: ending inventories 1,600 units, 40% completeusing the fifo method, the cost per equivalent unit for materials used during july was $10.78 $10.33 $9.78 $10.65