West Co.'s manufacturing costs are as follows:

Direct materials and direct labour	$700,000
Other variable manufacturing costs	100,000
Depreciation of factory building and manufacturing equipment	80,000
Other fixed manufacturing overhead	18,000

What amount should be considered product costs for external reporting purposes if the company uses absorption costing?

Multiple Choice

• $880,000.

• $700,000.

• $898,000.

• $800,000.