ABC PTE LTD had the following information available for May 2020:

Work in Process, May 1$20,000

Materials placed into production, May27,500

Direct labour, May37,500

Factory overhead rate is 150 percent of direct labour costs.Job cost sheets had the following balances:

Job Z1 $32,500

Job Z $255,000

Job Z $335,000

Job Z $418,750

Jobs Z3 and Z4 were not completed at the end of May.

What is the cost of goods finished for ABC PTE LTD during May?

1)$85,000

2)$87,500

3)$56,250

4)$53,750