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Forrest Corporation, a new company, adds material at the beginning of its production process; conversion cost, in contrast, is incurred evenly throughout manufacturing. During May,

Forrest Corporation, a new company, adds material at the beginning of its production process; conversion cost, in contrast, is incurred evenly throughout manufacturing. During May, the firm completed 15,600 units and had ending work in process of 2,600 units, 30% complete. Equivalent-unit costs were : materials, $21; conversion, $28. The cost of the company's ending work-in-process inventory is:

a. $22,080

b. $72,800

c. $76,440

d. $98,240

e. none of these are correct

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