Using the absorption method, calculate the following:

1. Cost of goods manufactured for the year.

2. The value of the ending inventory of finished goods.

3. The cost of goods sold for the year.

4. Net income for the year.

Alvarez Manufacturing Co. divided all of its costs and expenses into fixed and variable components. Data for the company's first year of operations follows. Ignore income taxes.

Beginning inventory of finished goods ............................................... 0

Units produced (no work in process) ................................................. 15,000

Units sold ................................................................................ 13,000

Units in ending inventory of finished goods ....................................... 2,000

Sales price ......................................................................... $195 per unit

Variable manufacturing costs .............................$75 for each unit manufactured

Variable selling and administrative expenses ............................$35 per unit sold

Fixed manufacturing costs for year ................................................$150,000

Fixed selling and administrative expenses for year ..............................$375,000