Roger Company Uses the FIFO Method in Its Process Costing

Multiple Choice

Roger Company uses the FIFO method in its process costing system.The following data are taken from the accounting records of a particular department for June:
Beginning work in process inventory:
$$\begin{array} { | l | r | } \hline \text { Cost } & \$ 17,500 \\\hline \text { Units } & 20,000 \text { units } \\\hline \text { Percentnge completion: } & \\\hline \text { Materials } & 100 \%\\\hline \text { Conversion } & 60 \%\\\hline\end{array}$$

Units completed and transferred out: 75,000 units
Cost per equivalent unit:
Material: $1.75
Conversion: $0.50
What is the cost of the 75,000 units transferred out of the department during June?

A) $151,250.
B) $145,250.
C) $131,500.
D) $168,750.