Use this information about Penny, Inc. to answer the question that follow. Penny, Inc. employs a process costing system. Direct materials are added at the beginning of the process. Here is information about the July activities: On July 1: Beginning inventories Direct materials cost Conversion costs 850 units, 60% complete $5,000 $4,000 During July: Number of units started Direct materials added Conversion costs added 15,000 $155,000 $83,520 On July 31: Ending inventories 1,600 units, 40% complete Using the FIFO method and rounding cost per unit to the nearest whole dollar, the cost of goods completed and transferred out during July was Oa. $236,905 Ob. $225,060 Oc. $228,200 Od. $227,270