Choco Mania Plc. produces various types of chocolate bars. Their best-selling product is called "Bar None." The following data was available for the year ending December 31:

bars produced	10,000 units
bars sold	8,500 units
direct materials	$20,000
direct labor incurred	$12500
fixed manufacturing overhead	$18000
variable manufacturing overhead	$8700
fixed selling and admin expenses	$3500
variable selling and admin expenses	$3000

There was no operating inventory at the beginning of the year because production of "Bar None" started in January. What is the correct total cost of the closing inventory using variable costing?

A. $10250

B.$7820

C.$3400

D.$6180

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