Acme Company manufactures and sells a single product. The se…
Acme Company manufactures and sells a single product. The selling price is $800 per unit. In its first year of operations (Year 1), Acme produces 2,500 units and sells 2,000 units. In Year 2, Acme produces 2,000 units and sells 2,500 units. Acme’s per-unit variable manufacturing costs are as follows: direct materials $320, direct labor $240, and variable manufacturing overhead $52. Acme’s total fixed manufacturing overhead costs are $300,000 in each year. Using absorption costing, what is the cost of goods sold in Year 2?