Obama Company sells its product for $25 per unit. During 2020, it produced 29000 units and sold 20000 units (there was no beginning inventory). Costs per unit are: direct materials $6, direct labour $5, and variable overhead $4. Fixed costs are: $406000 manufacturing overhead, and $101500 selling and administrative expenses. Cost of goods sold under absorption costing is

$300000.

$580000.

$650000.

$841000.