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.

Required:

Compute XYZ$\text{'}$s cost of goods sold for book purposes and for tax purposes.