#51

Question Content Area

A business operated at 100% of capacity during its first month and incurred the following costs:

Production costs (19,700 units):
Direct materials	$174,500
Direct labor	222,100
Variable factory overhead	243,900
Fixed factory overhead	103,000	$743,500
Operating expenses:
Variable operating expenses	$125,500
Fixed operating expenses	40,000	165,500

If 1,800 units remain unsold at the end of the month, the amount of inventory that would be reported on the absorption costing balance sheet is

a.$58,523

b.$67,932

c.$69,990

d.$83,056