The Southern Corporation manufactures a single product and has the following cost structure: Variable costs per unit:$38Production Selling and administrative$14Fixed costs per year: Production$140,000Selling 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:
A. $398,400
B. $258,400
C. $353,600
D. $394,400
Answer: D
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