Company XYZ manufactures a tangible product and sells the product at wholesale. In its first year of operations, XYZ manufactured $1,000$ units of product and incurred $$200,000$ direct material cost and $$130,000$ direct labor costs. For financial statement purposes, XYZ capitalized $$85,000$ indirect costs to inventory. For tax purposes, it had to capitalize $$116,000$ indirect costs to inventory under the UNICAP rules. At the end of its first year, XYZ held $260$ units in inventory.

Compute XYZ$$s cost of goods sold for book purposes and for tax purposes.

Cost of goods sold for book purposes?

Cost of goods sold for tax purposes?