A review of a company's inventory records for the year indicates that the following costs were incurred:
| Fixed production overhead: | $500,0000 |
| Direct material and direct labor: | 300,000 |
| Storage costs incurred during production: | 25,000 |
| Abnormal waste costs: | 30,0 |
If the company operated at full capacity during the year, the total capitalized inventory cost is closest to:
The total capitalized costs include fixed production costs, the direct conversion costs of material and labor, storage costs required as part of production but not abnormal waste costs. $500,000 + 300,000 + 25,000 = $825,000.