A firm uses backflush costing and values inventory using throughput accounting. All actual amounts are equal to budgeted amounts. The firm has NO variable overhead. Note that the below cost rates are on a per unit basis.

DM rate	$30 per unit
DL rate	$16 per unit
Fixed OH rate	$28 per unit
Total completed and in process	2,500 units
Units in finished goods	150
Units in process	100

The firm has $500 of raw materials at the end of the period. Which of the following is the correct balance for COGS after inventory costs have been backflushed?

$103,000

$67,000

$67,500

$103,500