On January 1^st, 2021, NHL Inc. had a Beginning Work-in-Process balance of $30,000 ($10,000 of Direct Materials and $20,000 of Conversion) which consisted of 10,000 units which were 50% complete with respect to conversion costs.

During January, NHL started production on an additional 20,000 units and incurred $50,000 in Materials and $55,000 in Conversion costs.

NHL's Ending Work-In-Process consisted of 8,000 units which were 50% complete with respect to conversion costs. NHL produces a single product.

All direct materials are added at the start of the production process while conversion costs are incurred uniformly.

NHL uses a weighted-average process costing system.

What was the company's Cost of Goods Sold, assuming that it sold half of its completed output during the year?

• $50,000

• $57,500

• $53,875

• $56,000