Roger Company Uses the FIFO Method in Its Process Costing

Roger Company uses the FIFO method in its process costing system.The following data are taken from the accounting records of a particular department for June:
Beginning work in process inventory:
$$\begin{array} { | l | r | } \hline \text { Cost } & \$ 17,500 \\\hline \text { Units } & 20,000 \text { units } \\\hline \text { Percentnge completion: } & \\\hline \text { Materials } & 100 \%\\\hline \text { Conversion } & 60 \%\\\hline\end{array}$$

Units completed and transferred out: 75,000 units
Cost per equivalent unit:
Material: $1.75
Conversion: $0.50
What is the cost of the 75,000 units transferred out of the department during June?

A) $151,250.
B) $145,250.
C) $131,500.
D) $168,750.