Acme Co. produces a single product. Information about the product for the past year is as follows:

Production (in units) 25,000

Sales (units) 23,000

Selling price/unit $ 26.00

Beg. Inventory (units) -0-

Variable costs per unit:

Direct materials $ 8.00

Direct labor $ 3.00

Variable overhead $ 1.80

Variable selling exps. $ 4.00

Fixed overhead $ 107,500

Fixed selling and admin. $ 26,800

Refer to the data in question 8. Using absorption costing, the cost of goods sold would be:

a.	$294,400	c.	$393,300
b.	$320,000	d.	$427,500