Work in process in Look Company's Grinding Department is: Work in process - Grinding Department Beginning inventory $ 670 To Finished Goods, 800 units Materials, 400 units, 55% completed Direct materials, 600 units $1.50 Direct labor, 30 hours $10.40 Factory overhead, 30 hours @ $16 Ending balance, 200 units, 40% completed 900 312 480 All direct materials are added at the beginning of the process. Since the conversion cost per equivalent unit in the current period is $1.20, what is the cost of the first 400 units transferred out of the Grinding Department, assuming a FIFO flow of inventory? $1,040 O $934 $1,240 O $ 886