Cutterski Corporation manufactures a propeller. Shown below is Cutterski's cost structure:

	Variable cost per propeller	Total fixed cost for the year
Manufacturing cost	$122	$523,600
Selling and administrative expense	$ 22	$129,500

In its first year of operations, Cutterski produced 61,600 propellers but only sold 51,800. What is the total cost that would be assigned to Cutterski's finished goods inventory at the end of the first year of operations under variable costing?

$1,411,200

$1,195,600

$1,519,000

$1,278,900