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A boat manufacturer produces 30 boats this year and incurred $3.6 million in material, labor, and overhead costs. 19 boats were sold during the year, and each boat was allocated the same amount of costs.

a. How much of the $3.6 million of total manufacturing costs should appear on the Company's income statement as Costs of Goods Sold?

b. Assuming Finished Goods Inventory consisted of only the unsold boats produced this year then what is the $ amount of Finished Goods Inventory?