A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (20,000 units): Direct materials Direct labor Variable factory overhead $180,000 240,000 280,000 100,000 $800,000 Fixed factory overhead Operating expenses: Variable operating expenses Fixed operating expenses $130,000 50,000 180,000 If 1,500 units remain unsold at the end of the month, the amount of inventory that would be reported on the variable costing balance sheet is Oa. $60,000 Ob. $52.500 Oc. $62.500 Od. $73.500