36. A firm uses backflush costing to assign product costs to inventory and values inventory using direct costing. All actual amounts are equal to budgeted amounts.

Total DM - $100,000 Total DL - $40,000 Total Variable OH - $80,000 Total Fixed OH - $500,000 Total units completed and in process - 40,000 Units in FG - 160 Units in process - 200

Finished goods has $0 beginning balance. After backflushing costs, what is the balance of the finished goods inventory account?

a.$1,880 b.$560 c.$880 d.$2,880