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

Production costs (20,000 units):
Direct materials	$175,000
Direct labor	228,300
Variable factory overhead	251,300
Fixed factory overhead	93,100	$747,700
Operating expenses:
Variable operating expenses	$123,000
Fixed operating expenses	42,900	165,900

If 1,900 units remain unsold at the end of the month, what is the amount of inventory that would be reported on the absorption costing balance sheet?

a.$73,872

b.$71,060

c.$62,187

d.$86,792