Samantha's Office Supplies manufactures desk organizers in its Processing Department. Direct materials are included at the inception of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Inspection takes place as units are placed into production. After inspection, some units are spoiled due to undetectable material defects. Spoiled units generally constitute 4% of the good units. Data provided for February 2017 are as follows:

WIP, beginning inventory 2/1/2017	51,700 units
Direct materials (100% complete)
Conversion costs (55% complete)
Started during February	170,400 units
Completed and transferred out	180,000 units
WIP, ending inventory 2/28/2017	26,800 units
Direct materials (100% complete)
Conversion costs (25% complete)
Costs:
WIP, beginning inventory:
Direct materials	$280,000
Conversion costs	80,400
Direct materials added	408,900
Conversion costs added	264,500

What is the total costs of all the units that were initially in the beginning

workinprocess

inventory and were subsequently shipped? Take into account the costs related to the completion of the conversion of the units during the month. Use the FIFO method of process costing. (Round any cost per unit calculations to the nearest cent.)

A.

$395,763

B.

$360,400

C.

$35,363

D.

$195,016