A firm uses backflush costing to assign product costs to inventory and values inventory using direct costing. All actual amounts are equal to budgeted amounts.

Total DM $100,000 Total DL $40,000 Total Variable OH $80,000 Total Fixed OH $500,000 Total units completed and in process 40,000 Units in FG 160 Units in process 200

Finished goods has $0 beginning balance. After backflushing costs, what is the balance of the finished goods inventory account?

Group of answer choices

a. $2,880

b. $560

c. $880

d. $1,880