Problem 8. Rudy Company employs process cost system, using FIFO method. A unit of product passes through two departments: Assembly and Finishing before it is complete. Information regarding Assembly Department follow: Work-in-process , Aug 1 10,000 units Spoiled units 7,500 Started in Production 65,000 Transferred out 60,000 Raw materials are added at the beginning of processing in the Assembly department without changing the number of units being processed. Work-in-process on August 1 was 90% complete as to conversion while 80% converted on August 31. The company usually experienced a 5% loss based on the completed units. Cost data for the month of August follow: Materials Labor Overhead Work-in-process 81,000 66,000 71,250 beginning Current cost 279,000 220,500 286,875 What is the total cost of units transferred-out and total cost of work in process, end? a. 870,600; 79,395 b. 870,600; 83,250 c. 864,000; 83,250 d. 864,000; 79,395 END