Krepps Corporation produces a single product. Last year, Krepps manufactured 33,100 units and sold 27,800 units. Production costs for the year were as follows:

Direct materials	$ 248,250
Direct labor	$ 145,640
Variable manufacturing overhead	$ 274,730
Fixed manufacturing overhead	$ 595,800

Sales totaled $1,320,500 for the year, variable selling and administrative expenses totaled $164,020, and fixed selling and administrative expenses totaled $205,220. 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:

a. $229,960

b. $272,460

c. $202,460

d. $263,960