TB MC Qu. 7-186 (Static) Krepps Corporation produces...

Krepps Corporation produces a single product. Last year, Krepps manufactured 20,000 units and sold 15,000 units. Production costs for the year were as follows:

Direct materials	$170,000
Direct labor	$110,000
Variable manufacturing overhead	$200,000
Fixed manufacturing overhead	$240,000

Sales totaled $825,000 for the year, variable selling and administrative expenses totaled $108,000, and fixed selling and administrative expenses totaled $165,000. 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: