Answer the following questions using the information below:

Kason, Inc., expects to sell 20,000 pool cues for $12.00 each. Direct materials costs are $2.00, direct manufacturing labor is $4.00, and manufacturing overhead is $0.80 per pool cue. The following inventory levels apply to 2016:

	Beginning inventory	Ending inventory
Direct materials	24,000 units	24,000 units
Workminusinminusprocess inventory	0 units	0 units
Finished goods inventory	2,000 units	2,500 units

On the 2016 budgeted income statement, what amount will be reported for cost of goods sold?

A.

$132,600

B.

$139,800

C.

$153,000

D.

$136,000