Obama Company sells its product for $26 per unit. During 2020, it produced 24500 units and sold 14000 units (there was no beginning inventory). Costs per unit are: direct materials $5, direct labour $4, and variable overhead $3. Fixed costs are: $294000 manufacturing overhead, and $98000 selling and administrative expenses. Cost of goods sold under absorption costing is

$168000.

$336000.

$392000.

$588000.