A manufacturer reports the following costs to produce 14,000 units in its first year of operations: Direct materials, $14 per unit, Direct labor, $10 per unit, Variable overhead, $154,000, and Fixed overhead, $224,000. Of the 14,000 units produced, 12,900 were sold, and 1,100 remain in inventory at year-end. Under absorption costing, the value of the inventory is:

Multiple Choice

• $26,400.

• $38,500.

• $56,100.

• $44,000.

• $27,500.