SovereignSovereign

Sales, Inc. has just completed its first year of operations. The company has not had any sales to date.

SovereignSovereign

has incurred the following costs associated with its production as of December 31, Year 1:

Direct materials	$47,000
Production labor	37,000
Bookkeeper salary	33,000
Factory utilities	23,500
Office rent	7,000
Factory supervisor salary	9,000
Machine maintenance contract	7,800

Under absorption costing, what is the inventory amount shown on the balance sheet at December 31, Year 1?

A.

$ 164 comma 300$164,300

B.

$ 107 comma 500$107,500

C.

$ 124 comma 300$124,300

D.

$ 84 comma 000$84,000