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

Production costs (18,900 units):

Direct materials$171,200

Direct labor223,200

Variable factory overhead252,500

Fixed factory overhead94,400$741,300

Operating expenses:

Variable operating expenses$122,800

Fixed operating expenses45,100167,900

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.$73,305

b.$70,596

c.$61,610

d.$86,590