FIFO process costing system. Produces trays in 3 departments. Filo pastry, filling prep, and baking.

Inspection takes place before the last 20% of the filling is added to the final product in the filling prep department. Company cost accountant estimated that this is at 60% incurrence of conversion costs. The remaining direct ingredients are added to all trays that pass inspection. Normal spoilage is 1% of good units that pass inspection in the period.

Details for the filling prep department:

Beg inventory: Transferred = 174,375; Direct materials = 26,250; conversion costs = 28,275

Costs added: Transferred = 705,000; Direct materials = 89,775; conversion costs = 151,830

Percentage completion:

Beg inventory: Direct materials 100%; conversion costs 65%

End inventory: Direct materials 50%; conversion costs 40%

What is the total value of the product transferred from the filling prep department to baking?

a) $333,300

b) $760,513

c) $838,503

d) 984,805