Steele Corporation has the following information for January, February, and March:

	January	February	March
Units produced	10,000	10,000	10,000
Units sold	7,000	8,500	10,500

Production costs per unit (based on 10,000 units) are as follows:

Direct materials	$12
Direct labor	8
Variable factory overhead	6
Fixed factory overhead	4
Variable selling and admin. expenses	10
Fixed selling and admin. expenses	4

There were no beginning inventories for January, and all units were sold for $50. Costs are stable over the three months.

What is the January ending inventory for Steele Corporation using the variable costing method?

	a.	$108,000
	b.	$260,000
	c.	$78,000
	d.	$90,000