Zee Corporation operated at 100% of its capacity during the first year of its operations. Additional data is provided below: Selling price is $800 per unit. Production costs (2,000 units):

Direct materials $180,000

Direct labor 240,000

Variable factory overhead 280,000

Fixed factory overhead 100,000 $800,000

Operating expenses:

Variable operating expenses $130,000

Fixed operating expenses 50,000 180,000

If company produces and sells 2000 units, the cost of goods sold reported under variable costing income statement would be?

800,000

830,000

700,000

980000