Hawk Ltd. uses process costing in its Fabricating Department. At the beginning ofOctober, it had12,000 units in beginning work in process that were40% complete with respect to conversion. During October it put87,000 units into production and completed89,000 good units. At October31, there were3,000 units in ending work in process that were70% complete with respect to conversion. Direct materials are added at the beginning of the process. Inspection occurs at the end of the process and normal spoilage is6% of good output.Costs related to the beginning inventory were$36,800 for direct materials and$28,600 for conversion costs. During themonth, the company issued$280,000 of direct materials and incurred$599,400 of conversion costs.

Assuming Hawk uses the FIFO method of processcosting, the cost of the ending work in process inventoryis:

A.$23,146B.$28,800C.$28,920D.$19,200E.$23,040