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

Production costs (20,700 units):
Direct materials	$183,700
Direct labor	228,100
Variable factory overhead	263,900
Fixed factory overhead	104,000	$779,700
Operating expenses:
Variable operating expenses	$120,100
Fixed operating expenses	46,400	166,500

If 1,700 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.$55,492

b.$65,356

c.$77,707

d.$64,022