SkiTwin Corporation uses a standard cost system to assist in its manufacture of water skis and uses direct labour hours to apply its overhead. The company controller provides you with the following information on the results of its most recent year end.

Budget Actual

Units produced 100,000 99,000

Units sold 100,000 96,000

Direct materials 50,000 kgs 47,840 kgs

Direct labour 40,000 DLHs 37,720 DLHs

Production costs:

Direct materials $200,000 $207,404

Direct labour $500,000 $471,500

Variable overhead $80,000 $84,640

Fixed overhead $160,000 $162,000

There were no beginning or ending work-in-process inventories but there were 4,000 units of finished goods at the end of the year.

Calculate the standard cost of goods sold for the year just ended.