SitDown is a maker of fine office chairs, and incurred the following costs during the year:

Cost of raw materials 12,000,000

Direct labor conversion costs 25,000,000

Production overheads 5,500,000

Freight charges of raw materials 3,000,000

Storage costs for finished good 800,000

Abnormal wastage 80,000

Administrative overhead 100,000

Given there is no work in progress inventory at year end:

1) What costs are capitalized to inventory?

2) What costs are expensed to the income statement?

Group of answer choices

Capitalized 45,600,000 ; Expensed 980,00

Capitalized 880,000 ; Expensed 45,600,000

Capitalized: 44,000,000 ; Expensed 980,000

Capitalized 45,500,000 ; Expensed 25,980,000