Last year, fixed manufacturing overhead costs were $18,000, variable production costs were $48,000, fixed selling and administration costs were $20,000, and variable selling administrative expenses were $9,600. Beginning inventory was 400 units with a cost of $9,380. During the year, 3,000 units were produced and 2,500 units were sold at a price of $40 per unit. Under absorption costing, what is the cost of goods sold for the year? Assume a FIFO cost flow assumption.

Multiple Choice

• $55,000

• $54,670

• $55,580

• $49,300