Saskatchewan Computer Systems, Inc. manufactures computer memory cards and uses process-costing. All direct materials are added at the inception of the production process. The accounting department noted that there was no beginning inventory for January. Direct materials purchases totalled $150,000 during the month. Work-in-process records revealed that 7,500 cards were started in January, 4,500 cards were completed, and 1,500 units were spoiled as expected. Ending work-in-process units are complete in respect to direct materials costs. Inspection occurs at the end of the process. What is the Saskatchewan Computer Systems Inc. cost transferred out, assuming spoilage units are not included in the equivalent unit calculation?

$120,000

$90,000

$82,500

$112,500

$37,500