RevampScamp uses a job-order costing system. It has two manufacturing departments Fabrication and Assembly. RevampScamp started, completed, and sold only two trailers during January. The following information is available for January 2018:

Assume RevampScamp's accountant calculated its applied manufacturing overhead for Job A to be $90,000, applied manufacturing overhead for Job b to be $60,000, and a total actual manufacturing overhead of $120,000.

The beginning Finished Goods balance is $170,000. RevampScamp completed and sold Job A during the month. RevampScamp completed Job B, but it did not sell Job B. What is the ending balance in the Finished Goods inventory?

a. $141, 500

b. $198,500

c. $218, 500

d. $196,500

Direct Materials Direct Labor Cost Job A $22,500 $4,500 Job B $24,500 $4,000