Arctic AC Company is a small manufacturer of window air conditioners. The units sell for $180 each. In 2020, the company produced 1,200 units. Beginning inventory was zero. Below is the variable costing income statements for 2020:

Arctic AC Company

Variable Costing Income Statement

For the Year Ending December 31, 2020

Sales $169,200

Less variable costs:

Variable cost of goods sold $26,320

Variable selling expense 12,220 38,540

Contribution margin 130,660

Less fixed costs:

Fixed manufacturing expense 21,000

Fixed selling expense 6,580

Fixed administrative expense 4,700 32,280

Net income $98,380

How much is the cost of goods sold under full costing?

		$38,540
		$47,320
		$42,000
		$42,770
		$40,000