The Gym Company produces weights in different sizes and sells them to gym equipment distribution companies who in turn sell them to various gyms such as Boston Sports Club or Gold's Gym. The manufacturing plant occupies 75% of the total buildings and grounds. Approximately 80% of the utilities are for the manufacturing plant. External vendors provide all of the materials and supplies. The sales force is paid entirely on commissions. Advertising spending is set by contract at beginning of the year. At full capacity, the plant is capable of producing 500,000 units per year, but 2006 production volumes are below this maximum capacity level. Total 2006 Product Cost per unit was $3.10, $0.60 of which was variable. Information on their 2006 costs and related inventory balances are listed in the table below. Item 1-Jan-2006 31-Dec-2006 During the Year Raw materials inventory $60,000 $20,000 Work-in-process inventory 72,000 88,000 Purchases of raw materials 164,500 Non factory administrative salaries 235,000 Direct labor ??? Advertising 148,000 Goods available for sale Cost of goods sold Purchases of raw materials Marketing salaries Non factory administrative salaries Factory maintenance staff salaries Direct labor Building rental |:| 1,334,250 |:| 1,284,250 250,000 Advertising 148,000 Utilities (Electricity, water, phone...) 120,000 Indirect labor Sales commissions (5% of sales) Factory equipment depreciation 5 What is the Cost of Goods Manufactured for 2006? Q a) $1,310,250 0 b)$1,284,250 o c) $1,334,250 0 0!) $1,294,250 0 e}$1,326,250 f) None of the above