Krepps Corporation produces a single product. Last year, Krepps manufactured 33,930 units and sold 28,300 units. Production costs for the year were as follows:

Direct materials	$	288,405
Direct labor	$	145,899
Variable manufacturing overhead	$	288,405
Fixed manufacturing overhead	$	542,880

Sales totaled $1,287,650 for the year, variable selling and administrative expenses totaled $164,140, and fixed selling and administrative expenses totaled $206,973. There was no beginning inventory. Assume that direct labor is a variable cost.

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

Multiple Choice

• $237,499

• $279,999

• $209,999

• $271,499