Haas Company manufactures and sells one product. The following information pertains to each of the companys first three years of operations:

Variable costs per unit:
Manufacturing:
Direct materials	$ 25
Direct labor	$ 17
Variable manufacturing overhead	$ 8
Variable selling and administrative	$ 3
Fixed costs per year:
Fixed manufacturing overhead	$ 150,000
Fixed selling and administrative expenses	$ 90,000

During its first year of operations, Haas produced 60,000 units and sold 60,000 units. During its second year of operations, it produced 75,000 units and sold 50,000 units. In its third year, Haas produced 40,000 units and sold 65,000 units. The selling price of the companys product is $57 per unit.

Why am I getting year 3 COGS incorrect?

Haas Company
Absorption Costing Income Statement
	Year 1	Year 2	Year 3
Salesselected answer correct	$3,420,000selected answer correct	$2,850,000selected answer correct	$3,705,000selected answer correct
Cost of goods soldselected answer correct	3,150,000selected answer correct	2,600,000selected answer correct	4,793,750selected answer incorrect
Gross marginselected answer correct	270,000	250,000	(1,088,750)
Selling and administrative expensesselected answer correct	270,000selected answer correct	240,000selected answer correct	285,000selected answer correct
Net operating income (loss)	$0	$10,000	$(1,373,750)