A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (10,000 units): Direct materials $80,000 Direct labor 120,000 Variable factory overhead 140,000 Fixed factory overhead 40,000 $380,000 Operating expenses: Variable operating expenses Fixed operating expenses $65,000 25,000 90,000 If 1,000 units remain unsold at the end of the month, the amount of inventory that would be reported on the absorption costing balance sheet is Ca. $34,000 b. $38,000 Oc. $47,000 Od. $40,500