A manufacturer reports the following costs to produce 25,000 units in its first year of operations: direct materials, $25 per unit, direct labor, $21 per unit, variable overhead, $250,000, and fixed overhead, $325,000. Of the 25,000 units produced, 23,700 were sold, and 1,300 remain in inventory at year-end. Under variable costing, the value of the inventory is:

Multiple Choice

• $59,800.

• $72,800.

• $89,700.

• $76,700.

• $45,500.