A. This answer includes selling and administrative costs. Cost of goods sold includes direct materials, direct labor and overhead applied. Selling and administrative costs are not part of the cost of goods sold.

B. Cost of goods sold includes direct materials ($13,700), direct labor ($4,800) and overhead applied ($20,000, or 800 hours × $25 per hour). In total this is $38,500. Allocated to the 7,000 units, this is a cost per unit of $5.50. Administrative and selling costs are not part of the cost of goods sold.

C. This answer includes administrative costs. Cost of goods sold includes direct materials, direct labor and overhead applied. Administrative costs are not part of the cost of goods sold.

D. This answer includes selling costs. Cost of goods sold includes direct materials, direct labor and overhead applied. Selling costs are not part of the cost of goods sold.