Sol Enterprises contribution income statement utilizing variable costing appears below:

Sol Enterprises Income Statement For the Year ended December 31, 2020

Sales ($12 per unit) $240,000

Less variable costs:

Cost of goods sold $100,000

Selling & administrative costs 18,000 118,000

Contribution margin 122,000

Less fixed costs:

Manufacturing overhead 60,900

Selling & administrative costs 15,000 75,900

Net income $ 46,100

Sol produced 21,000 units during the year. Variable costs per unit and fixed production costs have remained constant the entire year. There were no beginning inventories. How much is the dollar value of the ending inventory using variable costing?

$5,000 $7,900 $8,800 $2,900