Omar Company Sales price $50 per unit

Production cost: direct materials $20, direct labor $6, variable overhead $2 and production fixed cost $80,000 per month. Operating expense were $40,000 fixed, $1 variable per unit. If Omar company produced 15,000 unit but 12,000 unit were sold,

Absorption income statement: total production costs and cost of goods sold are

a.

$500,000 production cost and $400,000 cost of goods sold

b.

$680,000 production cost and $489,600 cost of goods sold

c.

$440,000 production cost and $352,000 cost of goods sold

d.

$470,000 production cost and $376,000 cost of goods sold

e.

$560,000 production cost and $420,000 cost of goods sold