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

Production costs (18,200 units):
Direct materials	$174,500
Direct labor	237,000
Variable factory overhead	268,200
Fixed factory overhead	98,300	$778,000
Operating expenses:
Variable operating expenses	$132,700
Fixed operating expenses	46,700	179,400

If 1,500 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.$56,025

b.$78,907

c.$66,956

d.$64,121