Outcrapping is a firm that produces portable sanitation units. This firm uses backflush costing and values inventory using direct costing, All cost and unit figures below are equal to budgeted amounts. The firm has NO fixed overhead.

Total DM	$10,000
Total DL	$4,000
Total OH	$5,600
Total completed and in process	7,000 units
Units in finished goods	75
Units in process	50

The firm has NO raw materials at the end of the period. Which of the following is the correct balance of the COGS account before inventory costs are backflushed? (Assume the firm uses lean process costing as described in the textbook, and round rates to the nearest cent if necessary.)

	a.	$9,821.43
	b.	$10,000
	c.	$19,250
	d.	$19,600