2.

A company produces a single product. Variable production costs are $12.8 per unit and variable selling and administrative expenses are $3.8 per unit. Fixed manufacturing overhead totals $44,000 and fixed selling and administration expenses total $48,000. Assuming a beginning inventory of zero, production of 4,800 units and sales of 4,000 units, the dollar value of the ending inventory under variable costing would be:

	$10,240
	$17,440
	$13,280
	$7,200 please show work, which is correct?