Figure 1

The following information relates to Department Z for the month of July, the sole processing department of Company ABC. 23,000 units (5,000 units from Beginning WIP and 18,000 units started and completed during July) were transferred out of the department to finished goods. 2,000 units remain in the department at the end of July. A calculation of equivalent units for work performed during July appears below:

	Equivalent Units	Equivalent Units
	Direct Materials	Labor and Overhead
Beginning WIP	0	1,500
Units started and Completed	18,000	18,000
Ending WIP	2,000	1,600
Total	20,000	21,100

Refer to Figure 1. Assume that cost per equivalent unit of direct materials equals $10.00 per unit and that the combined cost per equivalent unit of direct labor and factory overhead equals $20,00 per unit. Also assume that prior period beginning work in process costs total $10,000. Costs of ending work-in-process using the FIFO method would equal

A. $60,000

B. $16,000

C. $42,000

D. $20,000

E. $52,000