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One megaoctet (only the same as a megabyte if each byte has eight bits) is eight megabits. Exactly the same conversion applies as for megabytes.
A one "megabit" RAM, ROM, or flash memory chip has 10242 mebibits (Mibit) = 1 048 576 bits.
A one megabit per second Internet connection can transfer 10002 megabits (Mbit) = 1 000 000 bits per second.
So four different conversions of "megabits" to "megabytes" may apply (assuming that each byte does have eight bits):
It may vary by industry. Component manufacturers offering FLASH products advertise their products as "1Mbit" and contain "131,072 bytes". (Reference: SST's 1 Mbit SPI Bus Serial FLASH (PDF Datasheet); indexable addresses 0h-1FFFFh)