J & G sells a variety of school supplies from a store located at Red Mountain Mall. The business began the second quarter (April to June) of 2009 with 2,000 pencil cases at a total cost of $200,000. The following transactions took place during the quarter.

Using the FIFO method, the values of purchases and COGS after accounting for the transaction on May 1, 2009 are:

a.

$688,000 and $112,000

b.

$697,000 and $100,000

c.

$691,000 and $113,000

d.

$897,000 and $112,000