Year 1 financial data for the ABC Company is as follows:

Sales........................................................................$5,000,000

Direct materials...........................................................850,000

Direct manufacturing labor....................................1,700,000

Variable manufacturing overhead............................400,000

Fixed manufacturing overhead.................................750,000

Variable SG&A.............................................................150,000

Fixed SG&A..................................................................250,000

Under the absorption method, Year 1 Cost of Goods sold will be:

a. $2,550,000

b. $2,950,000

c. $3,100,000

d. $3,700,000