Cathy Company manufactures baseball bats in a single department. Cathy buys wood as a direct material for the bats. The wood is added at the beginning of the process and conversion costs are added evenly throughout the production process. Cathy began manufacturing 12,000 bats during the month of June. There was no beginning inventory. June's costs were as follows: Direct Materials $30,000 Conversion Costs 20,000 Total $50,000 9,000 bats were completed and transferred to finished goods. The 3,000 bats in work-in-process at the end of the month were one-third of the way through the production process. The cost of the 9,000 bats transferred to Finished Goods is closest to: $50,000 $40,500 $37,500 $42,560 $38,500