6.

DeAnne Company produces a single product. The company's variable costing income statement for August appears below:

DeAnne Company Income Staement For the month ended August 31
Sales ($18 per unit)	$ 738,000
Variable expenses:
Variable cost of goods sold	410,000
Variable selling expense	123,000
Total variable expenses	533,000
Contribution margin	205,000
Fixed expenses:
Fixed manufacturing overhead	105,810
Fixed selling and administrative	70,540
Total fixed expenses	176,350
Net operating income	$ 28,650

The company produced 35,270 units in August and the beginning inventory consisted of 8,270 units. Variable production costs per unit and total fixed costs have remained constant over the past several months.

The value of the company's inventory on August 31 under absorption costing would be:

	$25,400
	$40,640
	$33,020
	$45,640 Please show work, which is correct?