RidgewoodManufacturing produces snow shovels. The selling price per snow shovel is $28.00. There is no beginning inventory.

Costs involved in production are:

Direct material

$5.00Direct labor

4.00Variable manufacturing overhead

3.00Total variable manufacturing costs per unit

$12.00Fixed manufacturing overhead per year

$177,450

In addition, the company has fixed selling and administrative costs of $157,300per year.

During the year,Ridgewoodproduces45,500snow shovels and sells40,490snow shovels.

What is the value of ending inventory using variable costing?