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

Production costs (2,500 units):

Direct materials $42,500

Direct labor 85,000

Variable factory overhead 47,500

Fixed factory overhead12,500__________ $187,500

Operating expenses:

Variable operating expenses$15,000

Fixed operating expenses4,500_________19,500

If 75 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.$5,760

b.$5,625

c.$6,210

d.$5,250