Zee Corporation operated at 100% of its capacity during the first year of its operations. Additional data is provided below: Selling price is $800 per unit. Production costs (2,000 units):

Direct materials $180,000

Direct labor 240,000

Variable factory overhead 280,000

Fixed factory overhead 100,000 $800,000

Operating expenses:

Variable operating expenses $130,000

Fixed operating expenses 50,000 180,000

If company produces and sells 2000 units, the cost of goods sold reported under variable costing income statement would be?

a. 800,000
b. 830,000
c. 700,000
d. 980000