Penny, Inc. employs a process costing system. Direct materials are added at the beginning of the process. Here is information about July's activities: On July 1:1 Beginning inventories Direct materials cost Conversion costs 850 units, 60% complete $5,000 $4,000 During July: Number of units started Direct materials added: Conversion costs added 15,000 $155,000 $83,520 On July 31: Ending inventories 1,600 units, 40% complete Using the FIFO method and rounding cost per unit to four decimal places, the cost of goods completed and transferred out during July was Oa. $225,060 Ob. $236,905 Oc. $228,200 Od. $227,270