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Penny, Inc. employs a process costing system. Direct materials are added at the beginning of the...

Penny, Inc. employs a process costing system. Direct materials are added at the beginning of the process. Information about July’s 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

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Expert Solution

ekkarill92 answered 3 years ago
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