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Stopped Watch Company had a beginning inventory of 5,000 watches with costs of $20,000 on...

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Accounting

Stopped Watch Company had a beginning inventory of 5,000 watches with costs of $20,000 on January 1. All materials and direct labour are added at the beginning of the production process. The beginning inventory is 70% complete as to manufacturing overhead, while the ending inventory was 40% completed for manufacturing overhead. 15,000 units were started during the period and 15,000 units were completed during the period. Stopped Watch Company uses FIFO process-costing and calculated equivalent unit costs as follows: materials, $5.00; labour, $12.00; and overhead, $3.00.

What is the total cost of goods transferred out during the period using the FIFO method?

A.

$300,000

B.

$320,000

C.

$224,500

D.

$470,000

E.

$230,500

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