Evaluate the effects of a beginning and ending inventory.

A: A manufacturer at the end of its fiscal year recorded the data below:

Prime cost $800,000

Variable manufacturing overhead 100,000

Fixed manufacturing overhead 160,000

Variable selling and other expenses 80,000

Fixed selling and other expenses 40,000

Using absorption (full) costing, inventoriable costs are:

B: Citi Corporation manufactures a product. Shown below is Rawans cost structure:

Variable cost/ product fixed cost for the year

Manufacturing cost ..................... $114 $810,000

Selling and administrative .......... $20 $243,000

In its first year of operations, Rawan produced 60,000 products but only sold 54,000.

At what amount will Citi report its cost of goods sold for this first year for external reporting purposes?