Indiana Corporation produces a single product that it sells for $9 per unit. Inventory at the beginning of the year was 2,000 units with a cost of $12,500. During the year, 50,000 units were produced and 40,000 units were sold. Manufacturing costs and selling and administrative expenses for the year were as follows:

	Fixed Costs	Variable Costs
Raw materials	--	$1.95 per unit produced
Direct labour	--	1.25 per unit produced
Factory overhead	$100,000	0.50 per unit produced
Selling and administrative	70,000	0.60 per unit sold

What was Indiana Corporation's cost of goods sold for the year using absorption costing? Assume a FIFO cost flow assumption.

Multiple Choice

• $229,100

• $218,500.

• $228,000.

• $130,500.