A manufacturer reports the following costs to produce 28,000 units in its first year of operations: direct materials, $28 per unit, direct labor, $24 per unit, variable overhead, $280,000, and fixed overhead, $364,000. Of the 28,000 units produced, 27,000 were sold, and 1,000 remain in inventory at year-end. Under variable costing, the value of the inventory is: