TB MC Qu$.7-158($Static$)$ The Southern Corporation manufactures...

The Southern Corporation manufactures a single product and has the following cost structure:

Variable costs per unit:

Production

Selling and administrative

$$38$

Fixed costs per year:

Production

$$140,000$

Selling and administrative

$$84,000$

Last year, $7,000$ units were produced and $6,800$ units were sold. There was no beginning inventory.

Under absorption costing, the cost of goods sold for the year would be:

Multiple Choice

$$258,400$

$$398,400$

$$394,400$

$$353,600$