Question: Saskatchewan computer system, inc.manufactures computer memory cards and uses process-costing. all direct materials are added at the inception of the production process. the accounting department

Saskatchewan computer system, inc.manufactures computer memory cards and uses process-costing. all direct materials are added at the inception of the production process. the accounting department noted that there was no beginning inventory for January. Direct materials purchases totalled $150,000 during the month. work in process records revealed that 7,500 cards were started in January, 4,500 cards were completed, and 1,500 units were spoiled as expected. Ending work in process units are complete in respect to direct materials costs. inspection occurs at the end of the process.

What is the Saskachewan computer system inc. cost transfered out, assuming spoilage units are not included in the equivalent unit calculation?

a) $120,000

B) $112,500

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