Chen Corporation, a New Company, Adds Material at the Beginning

Multiple Choice

Chen Corporation, a new company, adds material at the beginning of its production process; conversion cost, in contrast, is incurred evenly throughout manufacturing. During May, the firm completed 15,000 units and had ending work in process of 2,000 units, 60% complete. Equivalent-unit costs were: materials, $15; conversion, $22.
The cost of the company's ending work-in-process inventory is:

A) $26,640.
B) $44,400.
C) $56,400.
D) $74,000.
E) None of the answers is correct.