Problem:
Management of Solman Corporation has asked your help as an intern in preparing some key reports for June. The beginning balance in the raw materials inventory account was $21,500. During the month, the company made raw materials purchases amounting to $70,800. At the end of the month, the balance in the raw materials inventory account was $31,300. Direct labor cost was $24,400 and manufacturing overhead was $72,600. The beginning balance in the work in process account was $24,300 and the ending balance was $18,300. The beginning balance in the finished goods account was $54,200 and the ending balance was $56,900. Selling expense was $20,200 and administrative expense was $36,600.
The conversion cost for June was:
a.$97,000
b.$158,000
c.$143,400
d. $95,200
Please select the correct answer and explain briefly why.