Penny, Inc. employs a process costing system. Direct materials are added at the beginning of the process. Here is information about the July activities: On July 1:   Beginning inventories 850 units, 60% complete Direct materials cost $5,000 Conversion costs $4,000     During July:   Number of units started 15,000 Direct materials added $155,000 Conversion costs added $83,520     On July 31:   Ending inventories 1,600 units, 40% complete Using the FIFO method and rounding cost per unit to the nearest whole dollar, the cost of goods completed and transferred out during July was a.$225,060 b.$227,270 c.$228,200 d.$236,905

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Penny, Inc. employs a process costing system. Direct materials are added at the beginning of the process. Here is information about the July activities:

On July 1:  
Beginning inventories 850 units, 60% complete
Direct materials cost $5,000
Conversion costs $4,000
   
During July:  
Number of units started 15,000
Direct materials added $155,000
Conversion costs added $83,520
   
On July 31:  
Ending inventories 1,600 units, 40% complete

Using the FIFO method and rounding cost per unit to the nearest whole dollar, the cost of goods completed and transferred out during July was
a.$225,060
b.$227,270
c.$228,200
d.$236,905
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