Principles of Accounting II

Please answer and show solution. (Chegg has answered this question in the past, but the answers dont match up.) Thank you.

Use this information about Penny, Inc. to answer the question that follow. MC.20-118 Penny, Inc. employs a process costing system. Direct materials are added at the beginning of the process. Here is information about the July activities:

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 the nearest whole dollar, the cost of goods completed and transferred out during July was

a. $227,270

b. $236,905

c. $228,200

d. $225,060