A firm uses backflush costing and values inventory using direct costing. Actual and budgeted amounts are equal. Finished goods has a $0 beginning balance. (Note that some items below are on a per unit basis.)

Unit DM $15 Unit DL $8 Unit VOH $5 Unit FOH $7 Total completed and in process 10,000 units Units sold 9,650 Units in process 150

Which of the following is the finished goods inventory balance after backflushing costs?

Group of answer choices

a. $60,200

b. $280,000

c. $5,600

d. $9,800