Penny, Inc. employs a process costing system. Direct materials are added at the beginning of the process. Information about Julys activities is as follows:

On July 1:
Beginning inventories	850 units, 60% complete
Direct materials cost	$5,000
Conversion costs	$4,000
During July:
Number of units started	15,000
Direct materials added	$155,000
Conversion costs added	$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

a. $227,270

b. $225,060

c. $236,905

d. $228,200