A manufacturer reports the following costs to produce 10,000 units in its first year of operations: direct materials, $10 per unit, direct labor, $6 per unit, variable overhead, $70,000, and fixed overhead, $120,000. Of the 10,000 units produced, 9,200 were sold, and 800 remain in inventory at year-end. Under absorption costing, the value of the inventory is:

Multiple Choice

• $28,000.

• $22,400.

• $12,800.

• $13,600.

• $18,400.