Penny Inc. uses process costing. All direct materials are ad…
Penny Inc. uses process costing. All 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 Using the FIFO method and rounding cost per unit to four decimal places, the cost of goods completed and transferred out during July was