Crasper & Bros, Inc. manufactures phone cases for both Androids and iPhones. Last year, Crasper manufactured 34,060 units and sold 28,600 phone cases (units). They have reported the following Production costs for the year:

Direct materials	$	255,450
Direct labor	$	173,706
Variable manufacturing overhead	$	269,074
Fixed manufacturing overhead	$	510,900

Sales of their phone cases totaled $1,172,600 for the year, variable selling and administrative expenses totaled $148,720, and fixed selling and administrative expenses totaled $214,578. Since they are a brand new company, there was no beginning inventory. Assume that the direct labor cost is a variable cost.

Using the absorption costing, the ending inventory for the year would be valued at:

Multiple Choice

• $263,830

• $255,330

• $193,830

• $221,330