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DeAnne Company produces a single product. The company's variable costing income statement for August appears below: DeAnne Company Income Staement For the month ended August

DeAnne Company produces a single product. The company's variable costing income statement for August appears below:

DeAnne Company Income Staement For the month ended August 31
Sales ($22 per unit) $ 902,000
Variable expenses:
Variable cost of goods sold 574,000
Variable selling expense 123,000
Total variable expenses 697,000
Contribution margin 205,000
Fixed expenses:
Fixed manufacturing overhead 106,680
Fixed selling and administrative 71,120
Total fixed expenses 177,800
Net operating income $ 27,200

The company produced 35,560 units in August and the beginning inventory consisted of 8,770 units. Variable production costs per unit and total fixed costs have remained constant over the past several months.

The value of the company's inventory on August 31 under absorption costing would be:
a $46,620
b $66,600
c $56,610
d

$71,600

Which is correct?

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