Miao Manufacturing, which began operations on January 1 of the current year, produces an industrial scraper that sells for $365 per unit. Information related to the current year's activities follows.

Number of scrapers produced30,000

Number of scrapers sold26,000

Variable costs per unit:

Direct materials$25

Direct labor35

Manufacturing overhead70

Annual fixed costs:

Manufacturing overhead$450,000

Selling and administrative190,000

Miao carries its finished-goods inventory at the average unit cost of production. There was no work in process at year-end.

Required:

A. Compute the company's average unit cost of production.

B. Determine the cost of the December 31 finished-goods inventory.

C. Compute the company's cost of goods sold.