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Viti's Office Supplies manufactures desk organizers in its Processing Department. Direct materials are added at the beginning of the process, and conversion costs are incurred

Viti's Office Supplies manufactures desk organizers in its Processing Department. Direct materials are added at the beginning of the process, and conversion costs are incurred evenly throughout the production cycle. Inspection takes place at the end of the process and spoiled units generally constitute 4% of the good units. Data provided for February are as follows:

WIP, beginning inventory February 1 25,000 units
Direct materials (100% complete)
Conversion costs (50% complete)
Started during February 82,000 units
Completed and transferred out 81,000 units
WIP, ending inventory February 28 15,000 units
Direct materials (100% complete)
Conversion costs (25% complete)
Costs:
WIP, beginning inventory:
Direct materials $150,000
Conversion costs 44,000
Direct materials added 209,916
Conversion costs added 109,893

Using the FIFO method of process costing, what are the total costs of all the units that were in the beginning work-in-process inventory and were subsequently shipped?

Question 8Select one:

a.

$16,500

b.

$210,500

c.

$274,500

d.

$194,000

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