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

Production costs (18,700 units):

Direct materials $174,900

Direct labor 228,300

Variable factory overhead 263,800

Fixed factory overhead 90,200 $757,200

Operating expenses:

Variable operating expenses $124,200

Fixed operating expenses 47,800 172,000

If 1,900 units remain unsold at the end of the month, what is the amount of inventory that would be reported on the variable costing balance sheet?

a.$76,935

b.$94,411

c.$67,773

d.$80,389