A company has operated at full capacity throughout the year, and a review of its inventory records for that period indicate that the following costs were incurred:
| Fixed production overhead | $500,000 |
| Direct material and direct labor | $300,000 |
| Storage costs incurred during production | $25,000 |
| Abnormal waste costs | $30,000 |
The total capitalized costs to inventory during the year are closest to:
The total capitalized costs include fixed production costs, the direct conversion costs of material and labor, and storage costs required as part of production. They do not, however, include abnormal waste costs. $500,000 + $300,000 + $25,000 = $825,000.