Comstats contribution income statement utilizing variable costing appears below:

Comstat Company Income Statement For the Year ended December 31, 2007

Sales ($28/unit) $840,000

Less variable costs: COGS 420,000

Selling & Admin 72,000

Contribution Margin 348,000

Fixed overhead 80,000

Fixed Selling & Admin 90,000

Net Income $178,000

Comstat Company produced 40,000 units during the year. Variable and fixed production costs have remained constant the entire year. There were no beginning inventories. The dollar value of the ending inventory using full costing will be: A. $160,000 B. $186,500 C. $140,000 D. $164,000