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 |
15,000 |
| Direct materials added |
$155,000 |
| Conversion costs added |
$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